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CITY OF HARRISON, OHIO

COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2013

Issued by: Finance Department Angelina Burton Finance Director

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CITY OF HARRISON, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2013

Table of Contents

INTRODUCTORY SECTION Letter of Transmittal .......................................................................................................... 3 GFOA Certificate of Achievement .................................................................................... 7 List of City Officials .......................................................................................................... 8 Organizational Chart ......................................................................................................... 9 FINANCIAL SECTION Independent Auditors’ Report ........................................................................................... 13 Management’s Discussion and Analysis ............................................................................. 17 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ....................................................................................... 27 Statement of Activities ........................................................................................... 29 Fund Financial Statements: Balance Sheet – Governmental Funds .................................................................... 30 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities ............................................................. 31 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds .......................................................................... 32 Reconciliation of the Statement of Revenues, Expenditures and Changes In Fund Balances of Governmental Funds to the Statement of Activities ........... 33 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Budget (Non-GAAP) Basis – General Fund ...................... 34 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Budget (Non-GAAP) Basis – Fire Improvement Fund ...... 35 Statement of Net Position – Proprietary Funds ...................................................... 36 Statement of Revenues, Expenses and Changes in Net Position – Proprietary Funds ................................................................................ 37 Statement of Cash Flows – Proprietary Funds ....................................................... 38

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Table of Contents (con’t.) Statement of Fiduciary Assets and Liabilities – Agency Funds ............................. 39 Notes to the Basic Financial Statements ....................................................................... 41 Combining Financial Statements and Individual Fund Schedules Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual - Budget (Non-GAAP) Basis General Fund .......................................................................................................... 77

Nonmajor Governmental Funds:

Fund Descriptions................................................................................................... 81

Combining Balance Sheet – Nonmajor Governmental Funds ................................ 84 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds ................................................ 85 Combining Balance Sheet – Nonmajor Special Revenue Funds ............................ 86 Combining Balance Sheet – Nonmajor Debt Service Funds .................................. 88 Combining Balance Sheet – Nonmajor Capital Projects Funds ............................. 89 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Special Revenue Funds .......................................... 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Debt Service Funds ................................................ 92 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Capital Projects Funds ........................................... 93

Individual Fund Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual - Budget (Non-GAAP) Basis: Street Maintenance and Repair Fund ............................................................... 94 State Highway Improvements Fund ................................................................. 95 Fire Memorial Fund ......................................................................................... 96 Community Center Fund ................................................................................. 97 Fire Capital Reserve Fund ............................................................................... 98 Senior Center Fund .......................................................................................... 99 Passport Account Fund .................................................................................... 100 Court Computer Fund ...................................................................................... 101 Project Lifesaver Fund ..................................................................................... 102 Police Pension Fund ......................................................................................... 103 Drug Law Enforcement Fund ......................................................................... 104 Law Enforcement Trust Fund .......................................................................... 105 Enforcement and Education Fund .................................................................... 106 FEMA Fund ..................................................................................................... 107 Police Memorial Fund ..................................................................................... 108 Recreation Tax Receipts Fund ......................................................................... 109 Recreation Activity Receipts Fund .................................................................. 110 Debt Service Fund ........................................................................................... 111

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Table of Contents (con’t.)

Special Assessment Fund ................................................................................. 112 Capital Improvement Fund .............................................................................. 113 Home Depot TIF Fund ..................................................................................... 114 Harrison Avenue TIF Fund .............................................................................. 115 Street and Safety Construction Fund ............................................................... 116 Nonmajor Enterprise Funds: Fund Descriptions................................................................................................... 117 Combining Statement of Fund Net Position – Nonmajor Enterprise Funds .......... 118 Combining Statement of Revenues, Expenses and Changes in Net Position – Nonmajor Enterprise Funds .......................................................... 119 Combining Statement of Cash Flows – Nonmajor Enterprise Funds ..................... 120 Agency Funds Fund Descriptions................................................................................................... 121 Combining Statement of Changes in Assets and Liabilities – Agency Funds ....... 122 STATISTICAL SECTION Statistical Section Description ........................................................................................... 125 Net Position by Component................................................................................................. 126 Changes in Net Position ...................................................................................................... 127 Fund Balances, Governmental Funds .................................................................................. 129 Changes in Fund Balances, Governmental Funds ............................................................... 130 Assessed Valuation and Estimated Actual Value of Taxable Property ........................................................................................................... 131 Direct and Overlapping Property Tax Rates (Per $1,000 of Assessed Valuation) .............................................................................. 132 Principal Taxpayers – Real Estate and Tangible Personal Property Tax ............................ 133 Real and Public Utility Property Tax Levies and Collections ............................................. 134 Income Tax Revenue Base and Collections ........................................................................ 135 Ratios of Outstanding Debt by Type ................................................................................... 136 Ratio of General Bonded Debt to Assessed Value and Bonded Debt Per Capita ................................................................................................ 138 Direct and Overlapping Governmental Activities Debt ...................................................... 139 Computation of Legal Debt Margin .................................................................................... 140 Pledged Revenue Bond Coverage – Sewer Fund ................................................................ 141 Demographic and Economic Statistics ................................................................................ 142 Principal Employers ............................................................................................................ 143 Full-Time Equivalent City Employees by Function/Program ............................................. 144 Operating Indicators by Function ........................................................................................ 145 Capital Assets Statistics by Function .................................................................................. 146

INTRODUCTORY

SECTION

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Finance Department

300 George Street Harrison, Ohio 45030 513-367-3732 513-202-8459 FAX

www.harrisonohio.org June 30, 2014 The Honorable Mayor, Members of City Council and Citizens of the City of Harrison, Ohio Ladies and Gentlemen: Presented is the Comprehensive Annual Financial Report (CAFR) of the City of Harrison, Ohio (the City). This CAFR represents the official report of the City of Harrison’s operations and financial position for the year ended December 31, 2013, developed to detail the status of the City finances to Harrison residents and elected officials, investment banks, underwriters and all other interested parties. This report is presented in compliance with Governmental Accounting Standards Board (GASB) Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis-for State and Local Governments.” Responsibility for both the accuracy of the data, and the completeness and fairness of the presentation, including all disclosures, rests with the City. To the best of our knowledge, the data contained in this report is accurate in all material respects, and is presented in a manner designed to set forth fairly the financial position and results of the operations of the City. All disclosures necessary to provide the reader with a better understanding of the City’s financial activities have been included. The City is responsible for establishing and maintaining an internal control structure designed to protect its assets from loss, theft or misuse. Furthermore, the accounting system must be adequate to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely derived and that the valuation of costs and benefits requires estimates and judgments by management. Ohio law requires independent audits to be performed on all financial operations of the City, either by the Auditor of State or, if permitted by the Auditor of State, an independent public accounting firm. Balestra, Harr & Scherer, CPAs, Inc. performed the audit for the year ended December 31, 2013. The Independent Auditors’ Report on the basic financial statements is included in the financial section of this report. GAAP requires that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of a Management’s Discussion and Analysis (MD&A). This transmittal letter complements the MD&A, and should be read in conjunction with it. The City’s MD&A immediately follows the Independent Auditors’ Report.

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THE REPORTING ENTITY The City has reviewed its reporting entity definition in order to ensure compliance and conformance with the provisions of GASB Statements. For financial reporting definition purposes, City management has considered all agencies, departments, and organizations comprising the City of Harrison, the primary government. THE CITY OF HARRISON The City of Harrison, named after President William Henry Harrison, is located in Hamilton County in southwestern Ohio, on the I-74 corridor, approximately 20 miles northwest of the City of Cincinnati. Incorporated as a village in 1850, Harrison became a city in 1981. The City covers approximately 5 square miles along the border of Ohio and Indiana, with approximately 10,000 residents. The City operates under its charter adopted in 2000, with a “Strong Mayor” form of government. The Mayor and seven Council members serve four year, staggered terms. The charter defines 14 departments, boards and/or commissions, though additional divisions and departments may be established by ordinance. The Mayor, with the consent of Council, appoints department directors, and may appoint one director to oversee multiple departments. The City provides a full range of municipal services including: police and fire protection, parks and recreation, senior services, water and wastewater utilities, refuse collection, road maintenance, municipal court, economic development, planning, zoning, and general administrative offices. The City collects a 1% municipal income tax with a credit offered to residents for taxes paid to other municipalities. The City employs 77 full-time employees and 31 part-time employees. The United Steelworkers (USW), the Fraternal Order of Police (FOP) and the Harrison Professional Firefighters IAFF represent non-exempt employees, depending on department. Each contract is for a period of 3 years, though in 2014, each union agreed to an extension of their respective contract through 2017. The contract extensions reflect flat wage increases. ECONOMIC CONDITION AND OUTLOOK Harrison has experienced a 32% increase in population in the last decade and, in 2013, was recognized as the fastest growing community in Hamilton County (in terms of residential units), largely due to the success of the Parks of Whitewater community. The City has annexed over 700 acres in the past several years, bringing our total land area to approximately 5 square miles. After many years of conversations with local business owners and garnering their support, the City of Harrison formed the Greater Harrison Chamber of Commerce in 2013. An exploratory committee spent the better part of 8 months meeting to discuss the vision and mission of the Chamber. They accomplished much of the groundwork in order for the Chamber to get started, including the creation of bylaws, a mission statement, a vision statement and program of work. Concerning business recruitment and retention, 2013 was a year that saw some major industrial projects. The City welcomed Cincinnati Test Systems and their new facility to Harrison. The Economic Development department was able to secure a grant to extend Biggs Blvd across New Haven to access the site. This investment will create additional opportunities to attract business development in that area. Cincinnati West Airport constructed a new hangar which doubled the hangar capacity at the airport.

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On the retail/restaurant front, 2013 saw a new, larger Skyline Chili built. Long John Silver took the former Skyline space and renovated it. Orange Leaf Yogurt opened on New Haven. Monk’s Kitchen opened up their new dining room. Supreme Nut and Candy reopened in their former location. Schoch Tile and Goody’s Department Store both opened in the fourth quarter of 2013. The former Executive Inn began a major renovation in 2013. The reopened as a completely remodeled hotel and under the Best Western brand. Downtown Harrison welcomed Broadway Arts and Chic Décor. Single family residential growth continued at Parks of Whitewater. Multi-family housing also grew with the addition of Liberty Square Townhomes on West Road. Legacy Condos by Fischer Homes also added new units in 2013. All of these projects contributed to our status as the fastest growing community in Hamilton County.

MAJOR INITIATIVES The City is committed to providing its residents and businesses with reliable infrastructure and dependable utility services. Infrastructure investments and improvements will continue into 2014. The resurfacing of Elaine Drive, Brooks Lane, Grandview Street and Constance Place will be completed in 2014, as well as Lyness Avenue. Additional residential street improvements for 2014 include the resurfacing of Featherwood Drive. These projects are financed through a combination of OPWC loans and grants. The cooperative project between the Ohio Department of Transportation and the City of Harrison for the reconstruction of State Street continues through 2014, with an estimated project completion date in 2016. The project is being funded with a combination of federal, state and local funds. LONG-TERM FINANCIAL PLANNING The City of Harrison has a responsibility to its citizens to properly account for public funds and to wisely manage finances, in order to ensure the continued delivery of City services. The City’s local economy is improving, reflected through the gradual increase of property tax settlements and income tax collections. The increase in these revenues, and the growth of the City’s tax base, should translate into an improved fiscal footing for the City. In 2012, City Council approved a 5% annual water rate increase for years 2013 through 2018, and in 2013, a 3% annual wastewater rate increase was approved for years 2014 through 2017. The increases are based on rate studies that considered operating expenses, capital improvement needs and debt covenants. The City agreed to pursue a Safety Services Levy as a part of the three union contract extensions. A 4.8 Mil Safety Service Levy will go before City voters on November 4, 2014. The City will consider financing a tax anticipation note upon the levy’s passage to fund operations until levy collections are distributed. The City actively seeks grant funds for infrastructure and road improvements, with additional funding typically financed with low interest State loans, through the OPWC and the OWDA. Equipment and vehicle replacements are financed through local institutions, for a maximum of 5 years depending on rotation schedule, and are included in a department’s annual budget submission.

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USE OF THE REPORT The report is published to provide City Council, as well as our citizens and other interested persons, detailed information concerning the financial condition of the City, with particular emphasis placed on the utilization of resources during the past fiscal year. This report should serve as a guide in formulating policies and in conducting the City’s future day-to-day activities. We believe the information, as presented, is accurate in all material aspects; it is presented in a manner designed to fairly set forth the financial activity of its various funds; and all disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial affairs have been included. Use of this report by the various departments of the City is encouraged when furnishing information. This report is available for public inspection at the City of Harrison’s Finance Office, located at 300 George Street, Harrison, Ohio. SUBMISSION TO THE CERTIFICATE OF ACHIEVEMENT PROGRAM The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Harrison for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2012. This was the 14th consecutive year that the City of Harrison has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS I would like to thank the knowledgeable staff in the Finance Department and the gracious staff in other City departments for helping me prepare this report. A special thanks to the Hamilton County Auditor’s Office for quickly responding to my information requests. I extend my sincere appreciation to Clark, Schaefer Hackett for their assistance with the preparation of this CAFR. In closing, I would like to thank the Mayor and Members of Council for their continued commitment to this City’s success. Respectfully submitted,

Angelina Burton Finance Director

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CITY OFFICIALS

ELECTED OFFICIALS ................................................................... Mayor .................................................................. JOEL F. MCGUIRE

Council Member ........................................................ TONY BURKART Council Member ......................................................... RYAN GRUBBS Council Member ........................................................... MARK LOUIS Council Member .................................................... HANK MENNINGER Council Member ....................................................... WILLIAM NEYER Council Member ................................................... JAMES ROBERTSON Council Member ......................................................... RANDY SHANK

APPOINTED OFFICIALS .............................................................. Clerk of Council .......................................................... CAROL WIWI Chief of Police ...................................................... CHARLES LINDSEY Chief of Fire .................................................... WILLIAM R. HURSONG Director of Finance ............................................... ANGELINA BURTON Director of Law ...................................................... WILLIAM DETERS Director of Public Works ............................................... JAMES LESLIE Director of Economic Development .............................. JENNIFER EKEY Director of Building ................................................. DANIEL BROOKS Income Tax Commissioner .................................... ANGELINA BURTON Senior Program Coordinator .......................................... JILL FRENCH Recreation Coordinator ............................................... JEAN WILSON Magistrate ......................................................... ALEX TRIANTAFILOU Magistrate’s Court Clerk................................................ LISA PFAFFL

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C S O H SO

ORGANIZATIONAL CHART

CITIZENS OF HARRISON(VOTERS)

MAYOR CITY COUNCIL

CLERK OFCOUNCIL

CHIEFS

POLICE

DIRECTORS

LAW FINANCEECONOMIC

DEVELOPMENTBUILDING PUBLIC WORKS RECREATION

MAYOR’S COURTBOARDS ANDCOMMISSIONS

ZONING

COUNCIL

FIRE AND EMS INCOME TAXSENIOR

PROGRAMSPLANNING

CIVIL SERVICE

RECREATION

1099

BAquino

Text Box

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FINANCIAL

SECTION

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bhs Circleville Piketon Worthington

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Balestra, Harr & Scherer, CPAs, Inc.

Accounting, Auditing and Consulting Services for Federal, State and Local Governments

www.bhscpas.com

Independent Auditor’s Report

Members of City CouncilCity of HarrisonHamilton County300 George StreetHarrison, Ohio 45030

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Harrison, Hamilton County, Ohio (the City), as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

Management is responsible for preparing and fairly presenting these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes designing, implementing, and maintaining internal control relevant to preparing and fairly presenting financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to opine on these financial statements based on our audit. We audited in accordance with auditing standards generally accepted in the United States of America and the financial audit standards in the Comptroller General of the United States’ Government Auditing Standards. Those standards require us to plan and perform the audit to reasonably assure the financial statements are free from material misstatement.

An audit requires obtaining evidence about financial statement amounts and disclosures. The procedures selected depend on our judgment, including assessing the risks of material financial statement misstatement, whether due to fraud or error. In assessing those risks, we consider internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not to the extent needed to opine on the effectiveness of the City's internal control. Accordingly, we express no opinion. An audit also includes evaluating the appropriateness of management’s accounting policies and the reasonableness of their significant accounting estimates, as well as our evaluation of the overall financial statement presentation.

We believe the audit evidence we obtained is sufficient and appropriate to support our audit opinions.

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Members of City CouncilCity of HarrisonIndependent Auditor’s ReportPage 2

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Harrison, Hamilton County, Ohio, as of December 31, 2013, and the respective changes in financial position and where applicable, cash flows, thereof and the respective budgetary comparisons for the General and Fire Improvement Funds thereof for the year then ended in accordance with the accounting principles generally accepted in the United States of America.

Emphasis of Matter

As discussed in Note 18 to the financial statements, during the year ended December 31, 2013, the City adopted the provisions of Governmental Accounting Standard No. 65, Items Previously Reported as Assets and Liabilities. We did not modify our opinion regarding this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require this presentation to include Management’s discussion and analysis listed in the table of contents, to supplement the basic financial statements. Although this information is not part of the basic financial statements, the Governmental Accounting Standards Board considers it essential for placing the basic financial statements in an appropriate operational, economic, or historical context. We applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, consisting of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, to the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not opine or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to opine or provide any other assurance.

Supplementary and Other Information

Our audit was conducted to opine on the City’s basic financial statements taken as a whole.

The introductory section, the financial section’s combining statements, individual fund schedules and the statistical section information present additional analysis and are not a required part of the basic financial statements.

The statements and schedules are management’s responsibility, and derive from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. We subjected these statements and schedules to the auditing procedures we applied to the basic financial statements. We also applied certain additional procedures, including comparing and reconciling statements and schedules directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves in accordance with auditing standards generally

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Members of City CouncilCity of HarrisonIndependent Auditor’s ReportPage 3

accepted in the United States of America. In our opinion, these statements and schedules are fairly stated in all material respects in relation to the basic financial statements taken as a whole.

We did not subject the introductory section and statistical section information to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or any other assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2014, on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. That report describes the scope of our internal control testing over financial reporting and compliance, and the results of that testing, and does not opine on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standardsin considering the City’s internal control over financial reporting and compliance.

Balestra, Harr & Scherer, CPAs, Inc.Piketon, OhioJune 27, 2014


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CITY OF HARRISON, OHIO Management’s Discussion and Analysis

Year Ended December 31, 2013 Unaudited

The discussion and analysis of the City of Harrison, Ohio’s financial performance provides an overall review of the City’s financial activities for the year ended December 31, 2013. The intent of this discussion and analysis is to look at the City’s financial performance as a whole. Readers should also review the financial statements and the notes to the basic financial statements to enhance their understanding of the City’s financial performance. Financial Highlights Key financial highlights for the year ended December 31, 2013 include:

The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows of resources at the close of the most recent year by $24,260,171.

The City’s total net position increased during the year by $98,007, or less than 1%. Unrestricted net position was $629,752. The City’s total expenses were $14,127,675, a decrease of $436,401. Program revenues of $7,674,000 reduced the net cost of the City’s functions to be financed from the

City’s general revenues to $6,453,675.

Using this Annual Financial Report This annual report consists of a series of financial statements and notes to those statements. These statements are organized so the reader can understand the City as a financial whole. The statements then proceed to provide an increasingly detailed look at specific financial activities. The Statement of Net Position and Statement of Activities provide information about the activities of the whole City, presenting both an aggregated view of the City’s finances and a longer-term view of those statements. Fund financial statements provide the next level of detail. For governmental funds, these financial statements tell how services were financed in the short-term as well as the amount of funds available for future spending. The fund financial statements also look at the City’s most significant funds with all other nonmajor funds presented in total in one column. Reporting the City as a Whole Statement of Net Position and the Statement of Activities While this document contains a large number of funds used by the City to provide programs and activities, the view of the City as a whole looks at all financial transactions and asks the question, “How did we do financially during 2013?” The Statement of Net Position and the Statement of Activities answer this question. These statements include all assets, liabilities, and deferred inflows/outflows of resources using the accrual basis of accounting similar to the accounting used by most private-sector companies. All current year revenues and expenses are taken into account regardless of when cash is received or paid. These two statements report the City’s net position and changes in net position. This change informs the reader whether the City’s financial position, as a whole, has improved or diminished. In evaluating the overall financial health, the reader of these financial statements should take into account non-financial factors that also impact the City’s financial well being. Some of these factors include the City’s tax base and the condition of its capital assets. In the Statement of Net Position and the Statement of Activities, the financial information of the City is divided into two kinds of activities:

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Governmental Activities – Most of the City’s services are reported here including police and fire

protection, parks and recreation, street repair and maintenance, and general government. Business-Type Activities – These activities include the water, sewer, storm water, sanitation and

water/wastewater deposits operations where the fees charged for these services are based upon the amount of usage and the intent is to recoup operational costs through the user fees.

Reporting the City’s Most Significant Funds Fund Financial Statements Fund financial reports provide detailed information about each major fund. The major funds of the City include the General, Fire Improvement, Home Depot TIF, Water and Sewer funds. The City uses many funds to account for a multitude of financial transactions. However, the focus of the fund financial statements is on the City’s most significant funds, and therefore only the major funds are presented in separate columns. All other funds are combined into one column for reporting purposes. Governmental Funds Most of the City’s activities are reported in governmental funds, which focus on how money flows into and out of those funds and the balances left at year-end available for spending in future periods. These funds are reported using an accounting method called modified accrual, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City’s general government operations and the basic services it provides. Governmental fund information helps you determine whether there are more or fewer financial resources that can be spent in the near future on services provided to our residents. The relationship (or differences) between governmental activities (reported in the Statement of Net Position and the Statement of Activities) and governmental funds is reconciled in the financial statements. Proprietary Funds The City maintains one type of proprietary funds; enterprise funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water, sewer, storm water, sanitation and water/wastewater deposit management functions. The City charges citizens for the services it provides, with the intent of recouping operating costs. Fiduciary Funds The financial activity of custodial funds, for which the City acts as the fiscal agent, is reported separately in the Statement of Assets and Liabilities. This financial activity is excluded from the City’s other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring the assets reported in these funds are used for their intended purposes. Agency funds are the only fiduciary fund type used by the City. The City as a Whole Recall that the Statement of Net Position provides the perspective of the City as a whole. In the case of the City of Harrison, Ohio, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by a total of $24.3 million at December 31, 2013.

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Table 1 provides a summary of the City’s net position for 2013 compared to 2012:

Restated Restated Restated2013 2012 2013 2012 2013 2012

Current and other assets $ 6,429,479 8,083,959 3,645,224 4,207,324 10,074,703 12,291,283 Capital assets 18,626,701 17,715,453 35,157,228 36,435,017 53,783,929 54,150,470

Total assets 25,056,180 25,799,412 38,802,452 40,642,341 63,858,632 66,441,753

Deferred outflows of resources - - 839,364 895,944 839,364 895,944

Long-term liabilities 7,028,780 7,729,015 27,849,500 29,308,561 34,878,280 37,037,576 Other liabilities 2,310,708 3,110,858 307,963 287,480 2,618,671 3,398,338

Total liabilities 9,339,488 10,839,873 28,157,463 29,596,041 37,496,951 40,435,914

Deferred inflows of resources 2,940,874 2,739,619 - - 2,940,874 2,739,619

Net position: Net investment in capital assets 11,201,136 10,749,393 8,321,936 8,173,930 19,523,072 18,923,323 Restricted 2,221,537 1,036,007 1,885,810 2,131,205 4,107,347 3,167,212 Unrestricted (646,855) 434,520 1,276,607 1,637,109 629,752 2,071,629

Total net position $ 12,775,818 12,219,920 11,484,353 11,942,244 24,260,171 24,162,164

Governmental Activities Business-Type Activities Total

Table 1Net Position

As displayed in Table 1, total net position of the City increased by $98,007 from 2012 to 2013. Although total assets decreased by approximately 4%, total liabilities decreased more by approximately 7%. The majority of the decrease in assets occurred in cash and investments as the City continued to spend down BAN proceeds and capital grants on various road improvement projects that began in 2012. This also led to the decreases in other liabilities. Long-term liabilities decreased as the City made its scheduled debt payments, including the initial payment on its 2012 revenue bonds. Capital assets reported on the government-wide statements represent the largest portion of the City’s assets. At year-end, capital assets represented 84% of total assets. Capital assets include land, construction in progress, land improvements, building and improvements, equipment, vehicles and infrastructure. These capital assets are used to provide services to citizens and are not available for future spending. Although the City’s investment in capital assets is reported net of debt, it should be noted that the resources to repay the debt must be provided from other sources, since capital assets may not be used to liquidate these liabilities. A portion of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the government’s ongoing obligations to citizens and creditors.

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Table 2 shows the changes in the governmental and business-type net position for the year ended December 31, 2013 compared with the prior year.

Restated Restated Restated2013 2012 2013 2012 2013 2012

Program revenues:

Charges for services $ 1,381,953 1,448,922 5,259,517 5,194,725 6,641,470 6,643,647 Operating grants and contributions 692,625 706,475 - - 692,625 706,475 Capital grants and contributions 339,905 1,313,600 - - 339,905 1,313,600

Total program revenues 2,414,483 3,468,997 5,259,517 5,194,725 7,674,000 8,663,722

General revenues:Income taxes 3,138,686 3,212,378 - - 3,138,686 3,212,378 Property and other taxes 2,813,464 2,898,579 - - 2,813,464 2,898,579 Grants and contributions not restricted to specific programs 498,626 479,451 - - 498,626 479,451 Investment earnings 21,841 28,313 820 948 22,661 29,261 Miscellaneous 76,036 171,181 2,209 5,947 78,245 177,128

Total general revenues 6,548,653 6,789,902 3,029 6,895 6,551,682 6,796,797

Total revenues 8,963,136 10,258,899 5,262,546 5,201,620 14,225,682 15,460,519

Expenses:Security of persons and property 6,085,651 6,261,278 - - 6,085,651 6,261,278 Public health services 250,573 316,702 - - 250,573 316,702 Leisure time activities 216,324 266,164 - - 216,324 266,164 Community and economic development 33,721 104,288 - - 33,721 104,288 Transportation 807,923 919,283 - - 807,923 919,283 General government 793,184 1,138,495 - - 793,184 1,138,495 Interest on long-term debt 248,331 239,783 - - 248,331 239,783 Water - - 1,951,365 1,601,191 1,951,365 1,601,191 Sewer - - 3,193,149 3,253,152 3,193,149 3,253,152 Storm water - - 46,813 46,613 46,813 46,613 Water/wastewater deposit - - 1,166 2,500 1,166 2,500 Sanitation - - 499,475 414,627 499,475 414,627

Total expenses 8,435,707 9,245,993 5,691,968 5,318,083 14,127,675 14,564,076

Transfers 28,469 28,469 (28,469) (28,469) - -

Change in net position 555,898 1,041,375 (457,891) (144,932) 98,007 896,443 Beginning net position 12,219,920 11,178,545 11,942,244 12,087,176 24,162,164 23,265,721

Ending net position $ 12,775,818 12,219,920 11,484,353 11,942,244 24,260,171 24,162,164

Table 2Changes in Net Position

Governmental Activities Type Activities TotalBusiness-

20



Governmental Activities Total governmental activities revenue decreased by $1,295,763, or 13%. The majority of this decrease was experienced in capital grants and contributions where the City secured more grant funding from State agencies for infrastructures projects in 2012. Total governmental activities expenses decreased by $810,286, or 9%. The decrease was attributable to increased reimbursement from the utility funds under a cost allocation plan that was expanded during 2013. Table 3, for governmental activities, indicates the total cost of services and the net cost of services. The statement of activities reflects the cost of program services and the charges for services and operating and capital grants offsetting those services. The net cost of services identifies the cost of those services supported by income and property taxes revenues and unrestricted intergovernmental revenue.

Restated RestatedTotal Cost Net Cost Total Cost Net Costof Services of Services of Services of Services

2013 2013 2012 2012

Security of persons and property $ 6,085,651 $ 5,195,059 $ 6,261,278 $ 5,363,423 Public health services 250,573 70,399 316,702 122,438 Leisure time activities 216,324 161,353 266,164 202,389 Community and economic development 33,721 (99,505) 104,288 (672) Transportation 807,923 (39,297) 919,283 (903,711) General government 793,184 484,884 1,138,495 753,346 Interest on long-term debt 248,331 248,331 239,783 239,783

Total cost of services $ 8,435,707 $ 6,021,224 $ 9,245,993 $ 5,776,996

Table 3Governmental Activities

It should be noted that 29% of the cost of services for governmental activities are derived from program revenues, including charges for services and operating and capital grants. As shown by the total net costs of $6,021,224, the majority of the City’s programs are funded by general revenues. A significant portion of the total general revenues consists of income and property taxes. Business-Type Activities The City’s major business-type activities include water and sewer operations. The Water Fund had an operating loss of $248,461. The Sewer Fund had operating income of $772,084, a decrease of $292,298. The decrease in both of these funds was attributable to an increased amount of reimbursements to the General Fund for shared services under an expanded cost allocation plan.

21



The City’s Funds Information about the City’s major governmental funds begins after the Statement of Activities. These funds are reported using the modified accrual basis of accounting. Governmental funds had total revenues of $10 million, expenditures of $10.1 million, and net other financing sources of approximately $28,000. During 2013, total fund balance of the governmental funds decreased by $33,716 to a total fund balance at year-end of $248,010. While capital assets are included in the statement of net position, expenditures are recognized in the fund statements thereby reducing the amount of resources available for future spending. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. The City’s General Fund experienced a decrease in fund balance during 2013. The General Fund is the primary fund that finances government services to citizens. Expenditures decreased from 2012 by $520,214, or 15%, primarily attributable to increased reimbursements by the utility funds for shared costs. The Fire Improvement Fund experienced an increase in fund balance of $125,704, or 28%, which decreased the fund balance deficit to $323,096. The increase over the prior year was due to purchases of ambulances and vehicles in 2012. The Home Depot TIF Fund experienced an increase in fund balance of $168,844 due to continued work on several road improvement projects. These projects are being financed with State grants and loans and bond anticipation notes. Explanation of the changes in the major enterprise funds of the City follow the same explanations as those provided in the assessment of the business-type activities noted above since enterprise funds are accounted for using full accrual accounting, the same accounting basis used in the City-wide statements. General Fund Budgeting Highlights The City’s budget is adopted on a fund basis. Before the budget is adopted, Council reviews the budgets of each department within the General Fund and other funds, and then adopts the budget. The legal level of budgetary control is at the object level. During 2013, the City amended its original budgetary amounts several times as certain information became known. Within each departmental budget, the Finance Director may make small line item adjustments within the budget, as long as the total operational and maintenance amount does not exceed their budgetary allotment. Actual revenues came in approximately $256,000 lower than budgeted due to lower than expected property and income tax collections as the local economy was slow to recover. Due to the City’s continuing efforts to control expenditures, actual budgetary expenditures came in approximately $182,000 less than the $3.1 million included in the final budget for 2013.

22



Capital Assets At the end of fiscal year 2013, the City had a total of $75.6 million invested in capital assets less accumulated depreciation of $21.8 million resulting in total capital assets, net of accumulated depreciation of $53.8 million. The City continued its efforts to upgrade its capital assets during 2013. The City acquired several vehicles, as well as increased construction in progress for several infrastructure projects. Projects completed during 2013 include improvements to Campbell Road, Whippoorwill Drive, New Haven Road and State Street and completion of the Cincinnati Testing System expansion project. Ongoing work continues on the Elaine/Brooks/Grandview improvements. Table 4 shows 2013 balances compared to those of 2012:

2013 2012 2013 2012 2013 2012

Land $ 3,015,891 3,015,891 485,420 485,420 3,501,311 3,501,311

Construction in progress 692,049 1,127,456 - 452,702 692,049 1,580,158

Land improvements 42,502 65,728 - - 42,502 65,728

Buildings and improvements 2,085,246 2,153,256 6,831,680 6,840,150 8,916,926 8,993,406

Equipment 237,211 245,405 2,410,336 2,851,030 2,647,547 3,096,435

Vehicles 1,182,779 1,366,375 135,204 142,392 1,317,983 1,508,767

Infrastructure 11,371,023 9,741,342 25,294,588 25,663,323 36,665,611 35,404,665

Totals $ 18,626,701 17,715,453 35,157,228 36,435,017 53,783,929 54,150,470


Table 4

Capital Assets at Year-End

(Net of Depreciation)

Additional information on the City’s capital assets can be found in Note 7 to the basic financial statements.

23



Debt Administration At December 31, 2013, the City had a total of $33.5 million of long-term debt obligations compared with $35.7 million reported at December 31, 2012. Table 5 shows outstanding debt obligations of the City at December 31, 2013 compared with 2012:


2013 2012 2013 2012 2013 2012

General Obligation Bonds $ 3,195,000 3,455,000 5,360,000 5,530,000 8,555,000 8,985,000

Capital Leases 1,193,771 1,499,017 43,891 70,676 1,237,662 1,569,693

OPWC Loans 1,574,976 1,670,599 1,618,283 1,731,621 3,193,259 3,402,220

ODOT Loans 190,770 263,188 - - 190,770 263,188

OWDA Loans - - 4,917,615 5,288,295 4,917,615 5,288,295

Revenue Bonds - - 15,370,000 16,150,000 15,370,000 16,150,000

Total $ 6,154,517 6,887,804 27,309,789 28,770,592 33,464,306 35,658,396

Table 5

Outstanding Long-term Debt Obligations at Year end

Of the City’s general obligation bonds outstanding at December 31, 2013, $3.2 million are accounted for within the governmental activities and the remaining $5.4 million are reported in the Sewer Fund. Revenue bonds are recorded in the Sewer Fund and are paid with charges for services of that fund. The City issued $16,550,000 in Sewer Revenue Refunding Bonds to refund the Series 2003 Sewer Revenue Improvement and Refunding Bonds during 2012 and saved the City over $1 million. The first payment on these bonds came due during 2013. OPWC loans represent interest-free loans from the State of Ohio and are paid from general revenues of the General Fund and from charges for services in the Sewer and Storm Water Funds. The OWDA loans outstanding at year-end are associated with the City’s Water enterprise fund and is paid with the revenue sources of that fund. See Note 12 of the notes to the basic financial statements for more detailed information on the debt obligations of the City. Contacting the City’s Finance Department This financial report is designed to provide our citizens, taxpayers, investors and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. If you have questions about this report or need additional financial information contact the Finance Department at City of Harrison, Ohio, 300 George Street, Harrison, Ohio 45030.

24

Basic Financial Statements

25


26

CITY OF HARRISON, OHIOStatement of Net Position

Governmental Business-TypeActivities Activities Total

AssetsEquity in pooled cash and investments $ 1,376,847 1,373,840 2,750,687 Cash in segregated accounts 12,872 - 12,872 Receivables: Property and other taxes 2,359,089 - 2,359,089 Payment in lieu of taxes 710,617 - 710,617 Income taxes 980,090 980,090 Accounts 187,134 394,031 581,165 Intergovernmental 652,838 - 652,838 Prepaid items 24,935 19,291 44,226 Materials and supplies inventory 10,057 87,252 97,309 Internal balances 115,000 (115,000) - Restricted cash and investments with fiscal agent - 1,885,810 1,885,810 Non-depreciable capital assets 3,707,940 485,420 4,193,360

Depreciable capital assets, net 14,918,761 34,671,808 49,590,569

Total assets 25,056,180 38,802,452 63,858,632

Deferred Outflow of Resources

Deferred charge on refunding - 839,364 839,364

LiabilitiesAccounts payable 83,900 71,666 155,566 Retainage payable 39,701 - 39,701 Accrued salaries 139,310 18,934 158,244 Intergovernmental payable 173,369 19,895 193,264 Accrued interest payable 44,428 197,468 241,896 Notes payable 1,830,000 - 1,830,000 Long-term liabilities: Due within one year 837,879 1,517,382 2,355,261

Due in more than one year 6,190,901 26,332,118 32,523,019

Total liabilities 9,339,488 28,157,463 37,496,951

Deferred Inflows of Resources

Property taxes and payment in lieu of taxes 2,940,874 - 2,940,874

Net PositionNet investment in capital assets 11,201,136 8,321,936 19,523,072 Restricted for: Capital projects 1,243,568 - 1,243,568 Debt service - 1,885,810 1,885,810 Streets and Highways 193,356 - 193,356 Recreation 496,461 - 496,461 Other purposes 288,152 - 288,152

Unrestricted (646,855) 1,276,607 629,752

Total net position $ 12,775,818 11,484,353 24,260,171

See accompanying notes to the basic financial statements.

December 31, 2013

27


28

CITY OF HARRISON, OHIOStatement of Activities

Operating Capital Charges for Grants and Grants and Governmental Business-Type

Expenses Services Contributions Contributions Activities Activities Total

Functions/Programs

Governmental activities:Security of persons and property $ 6,085,651 868,095 22,497 - (5,195,059) - (5,195,059) Public health services 250,573 36,320 143,854 - (70,399) - (70,399) Leisure time activities 216,324 53,471 1,500 - (161,353) - (161,353) Community and economic development 33,721 133,226 - - 99,505 - 99,505 Transportation 807,923 - 507,315 339,905 39,297 - 39,297 General government 793,184 290,841 17,459 - (484,884) - (484,884)

Interest on long-term debt 248,331 - - - (248,331) - (248,331)

Total governmental activities 8,435,707 1,381,953 692,625 339,905 (6,021,224) - (6,021,224)

Business-type activities:Water 1,951,365 1,509,511 - - - (441,854) (441,854) Sewer 3,193,149 3,165,519 - - - (27,630) (27,630) Other business-type activities: Storm Water 46,813 112,006 - - - 65,193 65,193 Water/Wastewater deposit 1,166 9,745 - - - 8,579 8,579

Sanitation 499,475 462,736 - - - (36,739) (36,739)

Total business-type activities 5,691,968 5,259,517 - - - (432,451) (432,451)

Total $ 14,127,675 6,641,470 692,625 339,905 (6,021,224) (432,451) (6,453,675)

General revenues and transfers: Income taxes levied for general purposes $ 3,138,686 - 3,138,686 Property taxes levied for: General purposes 1,074,061 - 1,074,061 Fire improvements 1,130,567 - 1,130,567 Police pension 57,150 - 57,150 Recreation 19,200 - 19,200 Capital projects 70,016 - 70,016 Payments in lieu of taxes 462,470 - 462,470 Grants and contributions not restricted to specific programs 498,626 - 498,626 Investment earnings 21,841 820 22,661 Miscellaneous 76,036 2,209 78,245

Transfers 28,469 (28,469) -

Total general revenues and transfers 6,577,122 (25,440) 6,551,682

Change in net position 555,898 (457,891) 98,007

Net position beginning of year, restated 12,219,920 11,942,244 24,162,164

Net position end of year $ 12,775,818 11,484,353 24,260,171


Net (Expense) Revenueand Changes in Net PositionProgram Revenues

Year Ended December 31, 2013

29

CITY OF HARRISON, OHIOBalance SheetGovernmental Funds

Home Nonmajor TotalFire Depot Governmental Governmental

General Improvement TIF Funds Funds

AssetsEquity in pooled cash and investments $ 41,833 - 201,271 1,133,743 1,376,847 Cash in segregated accounts - - - 12,872 12,872 Receivables: Property and other taxes 1,117,994 1,170,694 - 70,401 2,359,089 Payment in lieu of taxes - - 441,814 268,803 710,617 Income taxes 980,090 - - - 980,090 Accounts 47,883 125,740 - 13,511 187,134 Intergovernmental 120,059 62,990 251,340 218,449 652,838 Prepaid items 9,371 9,167 - 6,397 24,935 Materials and supplies inventory - - - 10,057 10,057 Advances to other funds 150,411 - - - 150,411

Total assets 2,467,641 1,368,591 894,425 1,734,233 6,464,890

Liabilities:Accounts payable 46,435 10,541 - 26,924 83,900 Retainage payable - - 31,052 8,649 39,701 Accrued salaries 69,971 53,773 - 15,566 139,310 Intergovernmental payable 56,791 75,529 - 41,049 173,369 Advances from other funds - - - 35,411 35,411 Notes payable - 305,000 1,250,000 275,000 1,830,000 Matured compensated absences 19,888 13,160 - - 33,048

Total liabilities 193,085 458,003 1,281,052 402,599 2,334,739

Deferred Inflows of Resources:Property taxes and payment in lieu of taxes 1,117,994 1,170,694 441,814 327,760 3,058,262 Unavailable revenue 603,484 62,990 15,526 141,879 823,879

Total deferred inflows of resources 1,721,478 1,233,684 457,340 469,639 3,882,141

Fund balances:Nonspendable 159,782 9,167 - 16,454 185,403 Restricted - - - 608,767 608,767 Assigned 393,296 - - 386,152 779,448 Unassigned - (332,263) (843,967) (149,378) (1,325,608)

Total fund balances 553,078 (323,096) (843,967) 861,995 248,010

Total liabilities, deferred inflows of

resources and fund balances $ 2,467,641 1,368,591 894,425 1,734,233 6,464,890


December 31, 2013

30

Total governmental fund balances $ 248,010

Amounts reported for governmental activities in the statement of net position are different because:

Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 18,626,701

Other long-term assets are not available to pay for current-period expenditures and therefore are unavailable in the funds. 941,267

In the statement of net position, interest is accrued on outstanding bonds and loan, whereas in governmental funds, interest is accrued when due. (44,428)

Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds:

Bonds payable (3,270,236)

ODOT loan payable (190,770)

OPWC loan payable (1,574,976) Capital lease payable (1,193,771) Compensated absences payable (765,979) (6,995,732)

Net position of governmental activities $ 12,775,818


CITY OF HARRISON, OHIOReconciliation of Total Governmental Fund Balances to

December 31, 2013Net Position of Governmental Activities

31

CITY OF HARRISON, OHIOStatement of Revenues, Expenditures and Changes in Fund BalancesGovernmental Funds

Home Nonmajor TotalFire Depot Governmental Governmental

General Improvement TIF Funds Funds

Revenues:Property and other taxes $ 1,082,336 1,140,660 - 146,715 2,369,711 Income taxes 3,146,733 - - - 3,146,733 Payment in lieu of taxes - - 202,570 251,977 454,547 Intergovernmental 443,520 123,951 844,529 1,246,581 2,658,581 Charges for services - 853,050 - 11,819 864,869 Fines, costs and forfeitures 114,948 - - 16,153 131,101 Licenses, permits and inspections 308,476 - - - 308,476 Interest 21,841 - - - 21,841 Contributions 1,625 - - 31,983 33,608

Other 20,182 14 4,605 8,019 32,820

Total revenues 5,139,661 2,117,675 1,051,704 1,713,247 10,022,287

Expenditures:Current: Security of persons and property 2,389,333 3,133,073 - 350,584 5,872,990 Public health services 13,259 - - 225,515 238,774 Leisure time activities 50,168 - - 138,907 189,075 Community and economic development 33,680 - - - 33,680 Transportation - - - 608,994 608,994 General government 481,748 - 119,745 116,267 717,760 Capital outlay 2,101 - 667,821 764,405 1,434,327

Debt Service:

Principal retirement 66,070 218,511 - 448,706 733,287

Interest and fiscal charges 3,391 61,089 25,093 166,012 255,585

Total expenditures 3,039,750 3,412,673 812,659 2,819,390 10,084,472

Excess of revenues over (under) expenditures 2,099,911 (1,294,998) 239,045 (1,106,143) (62,185)

Other financing sources (uses):Transfers in - 1,420,702 - 1,055,306 2,476,008

Transfers out (2,226,915) - (70,201) (150,423) (2,447,539)

Total other financing sources (uses) (2,226,915) 1,420,702 (70,201) 904,883 28,469

Net change in fund balances (127,004) 125,704 168,844 (201,260) (33,716)

Fund balance, beginning of year 680,082 (448,800) (1,012,811) 1,063,255 281,726

Fund balance, end of year $ 553,078 (323,096) (843,967) 861,995 248,010



32

Net change in fund balances - total governmental funds $ (33,716)

Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense:

Capital asset additions 1,448,352 Depreciation expense (537,104)

Revenue in the statement of activities that do not provide current financial resources are

not reported as revenues in the funds, rather these revenues are unavailable. (1,059,151)

Some expenses reported in the statement of activities do not require the use current financial resources and therefore are not reported as expenditures in governmental funds:

Compensated absences (3,024) Interest on long-term debt 4,234 Amortization of bond premiums 3,020

Repayment of long-term obligations is reported as an expenditure in the governmental funds, but the repayment reduces the long-term liabilities in the statement of net position. In the current year, theses amounts consisted of general obligation bonds, ODOT,

OPWC loans and capital leases. 733,287

Change in net position of governmental activities $ 555,898


CITY OF HARRISON, OHIOReconciliation of the Statement of Revenues, Expenditures

to the Statement of ActivitiesYear Ended December 31, 2013

and Changes in Fund Balances of Governmental Funds

33

CITY OF HARRISON, OHIOStatement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget (Non-GAAP) BasisGeneral Fund

VarianceOriginal Final From FinalBudget Budget Actual Budget

Revenues:Property and other taxes $ 1,080,030 1,153,529 1,082,336 (71,193) Income taxes 3,250,000 3,231,000 3,078,874 (152,126) Intergovernmental 423,274 469,700 443,137 (26,563) Fines, costs and forfeitures 210,000 115,000 112,781 (2,219) Licenses, permits and inspections 307,500 298,000 303,753 5,753 Interest 35,000 20,000 22,424 2,424 Contributions 3,500 500 125 (375) Other 42,500 27,388 15,564 (11,824)

Total revenues 5,351,804 5,315,117 5,058,994 (256,123)

Expenditures:

Current: General government 914,231 572,607 465,328 107,279 Security of persons and property 2,433,539 2,468,539 2,407,356 61,183 Public health services 13,260 13,260 13,259 1 Community and economic development 106,311 36,862 29,270 7,592 Leisure time activity 58,034 48,034 42,191 5,843

Total expenditures 3,525,375 3,139,302 2,957,404 181,898

Excess of revenues over expenditures 1,826,429 2,175,815 2,101,590 (74,225)

Other financing sources (uses):Transfers out (2,131,885) (2,371,885) (2,226,915) 144,970 Advances in 50,000 75,000 75,000 -

Total other financing sources (uses) (2,081,885) (2,296,885) (2,151,915) 144,970

Net change in fund balance (255,456) (121,070) (50,325) 70,745

Fund balance, beginning of year 38,999 38,999 38,999 Prior year encumbrances appropriated 10,584 10,584 10,584

Fund balance, end of year $ (205,873) (71,487) (742)



34

CITY OF HARRISON, OHIOStatement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Budget (Non-GAAP) BasisFire Improvement Fund


Revenues:Property and other taxes $ 1,117,745 1,209,174 1,140,659 (68,515) Intergovernmental 111,090 223,950 123,951 (99,999) Charges for services 881,152 772,618 766,173 (6,445)

Other 5,000 3,000 1,729 (1,271)

Total revenues 2,114,987 2,208,742 2,032,512 (176,230)

Expenditures:Current: Security of persons and property

Fire DepartmentPersonal services 2,865,543 2,950,543 2,893,126 57,417

Operations/maintenance 550,926 550,926 562,908 (11,982)

Total security of persons and property 3,416,469 3,501,469 3,456,034 45,435


Excess of revenues over (under) expenditures (1,301,482) (1,292,727) (1,423,522) (130,795)

Other financing source (uses):Tax anticipation notes issued 310,000 300,000 305,000 5,000 Transfers in 1,460,000 1,448,633 1,420,702 (27,931)

Transfers out (330,000) (319,474) (318,501) 973

Total other financing sources (uses) 1,440,000 1,429,159 1,407,201 (21,958)

Net change in fund balance 138,518 136,432 (16,321) (152,753)

Fund balance, beginning of year - - -

Prior year encumbrances appropriated 10,815 10,815 10,815

Fund balance, end of year $ 149,333 147,247 (5,506)



35

CITY OF HARRISON, OHIOStatement of Net PositionProprietary Funds

Water Sewer Non-major Total

AssetsCurrent assets:

Equity in pooled cash and investments $ 862,977 244,292 266,571 1,373,840 Receivables:

Accounts 111,233 231,762 51,036 394,031 Prepaid items 5,958 13,333 - 19,291 Materials and supplies inventory 86,037 1,215 - 87,252

Total current assets 1,066,205 490,602 317,607 1,874,414

Noncurrent assets:Restricted assets:

Cash and investments with fiscal agent - 1,885,810 - 1,885,810 Advances to other funds - 17,178 - 17,178 Non-depreciable capital assets 480,860 4,560 - 485,420 Depreciable capital assets, net 13,545,631 19,158,152 1,968,025 34,671,808

Total non-current assets 14,026,491 21,065,700 1,968,025 37,060,216

Total assets 15,092,696 21,556,302 2,285,632 38,934,630

Deferred outflows of resources

Deferred charge on refunding - 839,364 - 839,364

LiabilitiesCurrent liabilities:

Accounts payable 22,146 46,413 3,107 71,666 Accrued salaries 7,579 11,355 - 18,934 Intergovernmental payable 7,400 12,495 - 19,895 Accrued interest payable 93,852 103,616 - 197,468 Compensated absences payable 4,936 8,262 - 13,198 Advances from other funds - - 132,178 132,178 Capital lease payable, current portion of 27,506 - - 27,506 Revenue bonds payable, current portion of - 805,000 - 805,000 General obligation bonds payable, current portion of - 175,000 - 175,000 OPWC loans payable, current portion of - 92,308 21,030 113,338 OWDA loans payable, current portion of 383,340 - - 383,340

Total current liabilities 546,759 1,254,449 156,315 1,957,523

Long-term liabilities:Capital lease payable, net of current portion 16,385 - - 16,385

- 14,791,891 - 14,791,891 - 5,322,976 - 5,322,976 - 1,200,010 304,935 1,504,945

4,534,275 - - 4,534,275 59,847 101,799 - 161,646

Total long-term liabilities 4,610,507 21,416,676 304,935 26,332,118

Total liabilities 5,157,266 22,671,125 461,250 28,289,641

Net PositionNet investment in capital assets 9,064,985 (2,385,109) 1,642,060 8,321,936 Restricted for debt service - 1,885,810 - 1,885,810 Unrestricted 870,445 223,840 182,322 1,276,607

Total net position $ 9,935,430 (275,459) 1,824,382 11,484,353


Business-type Activities - Enterprise Funds

December 31, 2013

Compensated absences payable, net of current portion

Revenue bonds payable, net of current portionGeneral obligation bonds payable, net of current portionOPWC loans payable, net of current portionOWDA loans payable, net of current portion

36

CITY OF HARRISON, OHIOStatement of Revenues, Expenses and Changes in Net PositionProprietary Funds


Operating revenues:Charges for services $ 1,509,511 3,165,519 584,487 5,259,517 Other 2,674 371 - 3,045

Total operating revenues 1,512,185 3,165,890 584,487 5,262,562

Operating expenses:Personnel services 428,625 586,458 - 1,015,083 Contractual services 282,153 469,048 499,675 1,250,876 Supplies and materials 293,882 196,025 - 489,907 Other 333,688 334,233 1,166 669,087 Depreciation 422,298 808,042 46,613 1,276,953

Total operating expenses 1,760,646 2,393,806 547,454 4,701,906

Operating income (loss) (248,461) 772,084 37,033 560,656

Non-operating revenues (expenses):Loss on disposal of assets (836) - - (836) Interest revenue - 820 - 820 Interest expense and fiscal charges (190,719) (799,343) - (990,062)

Total non-operating revenues (expenses) (191,555) (798,523) - (990,078)

Income (loss) before transfers (440,016) (26,439) 37,033 (429,422)

Transfers out - - (28,469) (28,469)

Change in net position (440,016) (26,439) 8,564 (457,891)

Net position, beginning of year, restated 10,375,446 (249,020) 1,815,818 11,942,244

Net position, end of year $ 9,935,430 (275,459) 1,824,382 11,484,353




37

CITY OF HARRISON, OHIOStatement of Cash FlowsProprietary Funds


Cash flows from operating activities:Cash received from customers $ 1,492,586 3,181,595 584,989 5,259,170 Cash payments for employee services and benefits (418,517) (571,516) - (990,033) Cash payments to suppliers for goods and services (559,011) (637,198) (496,768) (1,692,977) Cash payments for other operating expenses (333,688) (334,233) (1,166) (669,087) Cash received from other operating revenue 4,638 371 - 5,009

Net cash provided by operating activities 186,008 1,639,019 87,055 1,912,082

Cash flows from noncapital financing activities:Transfers - - (28,469) (28,469) Return advances to other funds - - (75,000) (75,000)

Net cash used by noncapital financing activities - - (103,469) (103,469)

Cash flows from capital and related financing activities:Principal retirement (397,465) (1,042,308) (21,030) (1,460,803) Interest paid (198,727) (768,564) - (967,291)

Net cash used by capital and related financing activities (596,192) (1,810,872) (21,030) (2,428,094)

Cash flows from investing activities:Interest - 820 - 820

Net change (410,184) (171,033) (37,444) (618,661)

Cash and pooled investments beginning of year 1,273,161 2,301,135 304,015 3,878,311

Cash and pooled investments end of year 862,977 2,130,102 266,571 3,259,650

Reconciliation of operating income (loss) to net cashprovided by operating activities:

Operating income (loss) (248,461) 772,084 37,033 560,656 Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 422,298 808,042 46,613 1,276,953 Changes in assets and liabilities: Receivables (14,961) 16,076 502 1,617 Prepaid items (541) (1,250) - (1,791) Materials and supplies inventory 19,137 (524) - 18,613 Accounts payable (1,572) 29,649 2,907 30,984 Accrued salaries (830) 1,319 - 489 Intergovernmental payable 246 1,001 - 1,247 Compensated absences payable 10,692 12,622 - 23,314

Net cash provided by operating activities $ 186,008 1,639,019 87,055 1,912,082




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CITY OF HARRISON, OHIOStatement of Fiduciary Assets and LiabilitiesAgency Funds

AssetsCash in segregated accounts $ 14,397 Equity in pooled cash and investments 26,667 Receivables:

Income taxes 49,974

Total assets 91,038

Liabilities

Intergovernmental payable 91,038

Total liabilities $ 91,038


December 31, 2013

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CITY OF HARRISON, OHIO Notes to the Basic Financial Statements


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements of the City of Harrison are prepared in conformity with generally accepted accounting principles (GAAP) for local governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting policies used in the preparation of these financial statements are summarized below. A. Reporting Entity

The City of Harrison, Ohio (the "City") is a charter city and operates under the Mayor-Council form of government. A seven-member council is elected and the council selects one of its members to serve as mayor.

The reporting entity is comprised of the primary government, component units, and other organizations that are included to ensure that the financial statements are fairly presented. The primary government of the City consists of all funds and departments that comprise the legal entity of the City. They provide various services including police, fire, court, park and recreation, water sewage and sanitary services, street and sewer maintenance Included as part of the City’s primary government in the determination of the City’s reporting entity is the Harrison Mayor’s Court (the “Court”). Although the Court’s territorial jurisdiction extends beyond the boundaries of the City, the Court’s operations are not legally separate from the City. Monies held by the Court in a fiduciary capacity are included in an agency fund in the accompanying basic financial statements.

Component units are legally separate organizations for which the City is financially accountable. The City is financially accountable for an organization if the City appoints a voting majority of the organization's governing board and (1) the City is able to significantly influence the programs or services performed or provided by the organization; or (2) the City is legally entitled to or can otherwise access the organization's resources; or (3) the City is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or (4) the City is obligated for the debt of the organization. Component units may also include organizations for which the City approves the budget, the issuance of debt, or the levying of taxes. The City has no component units. Jointly Governed Organization Harrison Township-City of Harrison Joint Economic Development District In an effort to facilitate economic development and to create and preserve jobs, the City has entered into a contract with Harrison Township to create a Joint Economic Development District (JEDD). In accordance with State law, the District’s Board of Trustees levied a 1% income tax. The proceeds of that tax are allocated, in accordance with the contract, to the City and the Township. The City and the Township will utilize these JEDD revenues, in part, to construct infrastructure and improvement in the District. The City received $128,626 in revenues through the JEDD in 2013.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued B. Basis of Presentation

Government-wide Financial Statements The statement of net position and the statement of activities display information about the City as a whole. The statements distinguish between those activities that are governmental in nature, which are normally supported by taxes and intergovernmental revenues; and business-type activities, which rely to a significant extent upon fees and charges for support. Interfund activities are generally eliminated to avoid the "doubling-up" effect on revenues and expenses. The government-wide statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Program revenues include charges paid by the recipient of the goods or services offered by the program and grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues not classified as program revenues are presented as general revenues. The comparison of expenses with program revenues identifies the extent to which each governmental function or business-type segment is self-financing or relies upon general revenues of the City. Fund Financial Statements Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The focus of fund financial statements is on major funds rather than reporting funds by type. Each major fund is presented in a separate column. All other funds are aggregated and reported as non-major governmental or non-major proprietary funds. The City uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain functions or activities. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities, deferred inflows of resources and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. Governmental funds are those through which most governmental functions typically are financed. The following are the City's major governmental funds:

General Fund - The General Fund is used to account for all financial resources except those required to be accounted for in another fund. The General Fund balance is available to the City for any purpose provided it is expended or transferred according to the general laws of Ohio and the Charter of the City. Fire Improvement Fund – This fund accounts for voted property taxes and contracts that relate to the operation of the fire department.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued B. Basis of Presentation - continued

Home Depot TIF Fund – This fund accounts for payments in lieu of taxes received from this TIF District for public improvements.

Proprietary funds are used to account for the City's ongoing activities that are similar to those found in the private sector where the intent of the governing body is that the cost of providing goods and services to the general public be financed or recovered primarily through user charges. Proprietary funds are either classified as enterprise or internal service. The City does not have any internal service funds.

Water Fund - Accounts for the provision of water service to the City and surrounding areas. Sewer Fund - Accounts for the provision of sanitary sewer service to the City and surrounding areas.

The other enterprise funds of the City are used to account for storm water, water/wastewater deposits and sanitation. Fiduciary Funds. The City's only fiduciary funds are agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The City's agency funds account for monies held by the Mayor’s Court in a fiduciary capacity and to account for the administering and collection of income taxes related to the Joint Economic Development District.

C. Measurement Focus

Government-Wide Financial Statements The government-wide statements are prepared using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Fund Financial Statements The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental fund types are accounted for using current financial resources measurement focus. With this measurement focus, only current assets, current liabilities, and deferred inflows of resources are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in current financial resources. Since governmental funds financial statements use a different measurement focus and basis of accounting than the government-wide statements, governmental funds financial statements include reconciliations to the government-wide statements.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued C. Measurement Focus - continued

All governmental fund types are accounted for using the modified accrual basis of accounting. Under this basis, revenues are recognized in the accounting period when they become both measurable and available. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The available period for the City is sixty days after year-end. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if measurable. However, debt service expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due. All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the statement of net position. The accrual basis of accounting is utilized by the proprietary fund types. Under this method, revenues are recognized when they are earned, and expenses are recognized at the time liabilities are incurred. Proprietary fund operating statements present increases (i.e., revenues) and decreases (i.e., expenses) in total assets. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering services in connection with a proprietary fund's principal ongoing operations. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. Revenues – Exchange and Non-Exchange Transactions Non-exchange transactions, in which the City receives value without directly giving equal value in return, include municipal income taxes, property taxes, payments in lieu of taxes, grants, entitlements and donations. On an accrual basis, revenue from municipal income taxes is recognized in the period in which the income is earned. Revenue from property taxes and payments in lieu of taxes are recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. In applying the susceptible to accrual concept under the modified accrual basis, the following revenue sources are deemed both measurable and available: interest earnings, state-levied locally shared taxes (including gasoline tax), fines and forfeitures, grants, and municipal income tax.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued C. Measurement Focus - continued

Deferred Inflows of Resources In addition to liabilities, the statements of financial position report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. For the City, deferred inflows of resources include property taxes, payments in lieu of taxes and unavailable revenue. Receivables for property taxes and payments in lieu of taxes represent amounts that are measureable as of December 31, 2013, but are intended to finance 2014 operations. These amounts have been recorded as deferred inflows of resources on both the government-wide statement of net position and the governmental fund financial statements. Unavailable revenue is reported only on the governmental fund financial statements and represents receivables that will not be collected within the available period (sixty days after year-end). Since governmental funds’ financial statements use a different measurement focus and basis of accounting than the government-wide financial statements, governmental funds’ financial statements include reconciliations to the government-wide financial statements.

D. Cash and Investments

To improve cash management, cash received by the City is pooled. Monies for all funds are maintained in this pool. Individual fund integrity is maintained through the City’s records. Each fund’s interest in the pool is presented as “equity in pooled cash and investments” on the financial statements. During 2013, investments were limited to STAR Ohio and U.S. Government money market mutual funds. Except for nonparticipating investment contracts, investments are reported at fair value which is based on quoted market prices. Nonparticipating investment contracts, such as non-negotiable certificates of deposit, are reported at cost. The City has invested funds in the State Treasury Asset Reserve of Ohio (STAR Ohio) during 2013. STAR Ohio is an investment pool managed by the State Treasurer’s Office which allows governments within the State to pool their funds for investment purposes. STAR Ohio is not registered with the SEC as an investment company, but does operate in a manner consistent with Rule 2a7 of the Investment Company Act of 1940. Investments in STAR Ohio are valued at STAR Ohio’s share price which is the price the investment could be sold for on December 31, 2013. Following Ohio Statutes, the Council has, by resolution, specified the funds to receive an allocation of interest earnings. During 2013, interest revenue credited to the general fund amounted to $21,841, which includes $21,577 assigned from other funds.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued D. Cash and Investments - continued

The City has segregated bank accounts for the Mayor’s court and senior center deposits which are held separate from the City’s central bank account. The depository accounts are presented on the financial statements as “cash in segregated accounts” since they are not required to be deposited in the City treasury. At year end, the City had $1,885,810 held by a trustee as designated by bond indenture. This amount is reported as “restricted cash and investments with fiscal agent” in the financial statements. An analysis of the City’s deposits and investments at year end is provided in Note 3.

E. Prepaid Items

Payments made to vendors for services that will benefit periods beyond December 31, 2013 are recorded as prepaid items using the consumption method by recording a current asset for the prepaid amount and reflecting the expenditure/expense in the year in which services are consumed.

F. Supplies Inventory

Inventories are presented at cost on first-in, first-out basis and are expended/expensed when used. Inventory consists of expendable supplies.

G. Capital Assets

Capital assets, which include land, land improvements, buildings and improvements, infrastructure, furniture and equipment, vehicles and construction in progress, are reported in the applicable governmental or business-type columns in the government-wide financial statements. Capital assets utilized by governmental activities are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund financial statements. Capital assets utilized by the proprietary funds are reported both in the business-type activities column of the government-wide statement of net position and in the respective funds. The City defines capital assets as those with an individual cost of more than $5,000 and an estimated useful life in excess of one year. All capital assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated capital assets are valued at their estimated fair value on the date received. Infrastructure includes streets, storm sewers, water lines and sewer lines. Interest on constructed capital assets is capitalized for business-type activities. When capital assets are purchased, they are capitalized and depreciated in the government-wide statements and the proprietary fund statements. Capital assets are recorded as expenditures of the current period in the governmental fund financial statements.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued G. Capital Assets - continued

All capital assets except for land and construction in progress are depreciated. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. The estimated useful lives are as follows:

Infrastructure 50 years Buildings 50 years Furniture and equipment 5-20 years Vehicles 8 years Land improvements 20 years H. Restricted Assets Certain cash and investments are classified as restricted cash on the financial statements because

these funds are being held by a trustee as designated by the bond indenture. I. Accrued Liabilities and Long-Term Obligations

All payables, accrued liabilities and long-term obligations are reported in the government-wide

financial statements, and all payables, accrued liabilities and long-term obligations payable from proprietary funds are reported on the proprietary fund financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources are reported as obligations of the funds. However, claims and judgments and compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are due for payment during the current year. Bonds, capital leases and long-term loans are recognized as a liability on the fund financial statements when due.

J. Interfund Balances

During the course of operations, transactions occur between individual funds for goods provided or services rendered. On fund financial statements, receivables and payables resulting from short-term interfund loans are classified as "interfund receivables/payables". Long-term interfund loans (advances) are classified as "advances to other funds" and "advances from other funds". These amounts are eliminated in the governmental columns of the statement of net position, except for any net residual amounts due between governmental and business-type activities, which are presented as internal balances.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued K. Deferred Outflow of Resources

In addition to assets, the statement of financial position reports a separate section for deferred outflow of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the government-wide and proprietary statements of financial position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.

L. Compensated Absences

The City follows the provisions of GASB Statement No. 16, “Accounting for Compensated Absences”. Vacation and compensatory time benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it is probable that the City will compensate the employees for the benefits through paid time off or some other means. Sick leave termination benefits are accrued using the vesting method. The liability includes the employees who are currently eligible to receive termination benefits and those employees for whom it is probable that they will become eligible to receive payment in the future. The amount is based on accumulated sick leave and employees' wage rates at year-end. Vested vacation and sick leave is recorded as an expense in the government-wide statements for the period in which the leave was earned. For governmental funds, a liability is recorded for compensated absences only if they have matured, for example, as a result of employee resignations and retirements. Payment of vacation and sick leave recorded in the government-wide financial statements is dependent upon many factors; therefore timing of future payments is not readily determinable. Management believes that sufficient resources will be available when payment is due.

M. Accounting Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued N. Grants and Other Intergovernmental Revenues

Grants made on the basis of entitlement periods are recorded as intergovernmental receivables and revenues when entitlement occurs. All other reimbursement-type grants are recorded as receivables and revenues when the related expenditures are incurred.

O. Fund Balances

Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows:

Nonspendable – The nonspendable fund balance category includes amounts that cannot be spent because they are not in a spendable form, or legally or contractually required to be maintained intact. The “not in a spendable form” criterion includes items that are not expected to be converted into cash. It also includes the long-term amount of loans receivable, as well as property acquired for resale, unless the use of the proceeds from the collection of those receivables or from the sale of those properties is restricted, committed or assigned.

Restricted – Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions.

Committed – The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by a formal action (ordinance) of the City Council. Those committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (ordinance) it employed to previously commit those amounts. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements.

Assigned – Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the general fund, assigned amounts represent intended uses established by the City Council.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued O. Fund Balances - continued

Unassigned – Unassigned fund balance is the residual classification for the general fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned.

The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, or unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first, followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used.

P. Net Position

Net position represents the difference between assets, liabilities, and deferred outflows/inflows of resources. Net investment in capital assets consists of capital assets net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when the limitations imposed on its use either through constitutional provisions, enabling legislation or through external restrictions imposed by creditors, grantors, contributors, or laws or regulations of other governments. At December 31, 2013, none of the City's net position was restricted by enabling legislation. The net position restricted for other purposes result from special revenue funds and the restriction on their net position use. When both restricted and non-restricted resources are available for use, it is the City's policy to use restricted resources first, and then unrestricted resources, as they are needed.

Q. Budgetary Process

The budgetary process is prescribed by provisions of the Ohio Revised Code and entails the preparation of budgetary documents within an established timetable. The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriation ordinance, all of which are prepared on the budgetary basis of accounting. The certificate of estimated resources and the appropriations ordinance are subject to amendment throughout the year with the legal restriction that appropriations cannot exceed estimated resources, as certified. All funds, other than fiduciary funds, are legally required to be budgeted and appropriated. The legal level of budgetary control (the level at which transfers of budget amounts cannot be made without legislative approval) is at the object level. Budgetary modifications may only be made by ordinance of the City Council. The City legally adopted supplemental appropriations during 2013.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Q. Budgetary Process - continued

Tax Budget By July 15, the Mayor submits an annual tax budget for the following year to City Council for consideration and passage. The adopted budget is submitted to the County Auditor, as secretary of the County Budget Commission, by July 20 of each year, for the period January 1 to December 31 of the following year. Estimated Resources

The County Budget Commission determines if the budget substantiates a need to levy all of the previously authorized taxes and reviews estimated revenue. The Commission certifies its actions to the City by September 1. As part of this certification, the City receives the official certificate of estimated resources that states the projected revenue of each fund. Prior to December 31, the City must revise its budget so that total contemplated expenditures from any fund during the ensuing year will not exceed the amount available as stated in the certificate of estimated resources. The revised budget then serves as the basis for the appropriation ordinance. On or before January 31, the certificate of estimated resources is amended to include any unencumbered fund balances at December 31 of the preceding year. The certificate may be further amended during the year if the fiscal officer determines that the revenue collected is greater or less than the current estimates. Appropriations

The annual appropriation ordinance must be passed no later than April 1 of each year for the period January 1 to December 31. A temporary appropriation measure to control expenditures may be passed on or about January 1 of each year for the period from January 1 to March 31. The appropriation ordinance fixes spending authority at the object level. The appropriation ordinance may be amended during the year, as new information becomes available, provided that total fund appropriations do not exceed current estimated resources, as certified. Administrative control is maintained through the establishment of more detailed line-item budgets. The amounts on the budgetary schedules reflect the original and final appropriation amounts, including all amendments and modifications legally enacted by Council.

Encumbrances

As part of formal budgetary control, purchase orders, contracts, and other commitments for the expenditure of monies are recorded as the equivalent of expenditures on the non-GAAP budgetary basis in order to reserve that portion of the applicable appropriation and to determine and maintain legal compliance. The Ohio Revised Code prohibits expenditures plus encumbrances from exceeding appropriations. On the GAAP basis, encumbrances outstanding at year-end are reported as restricted, committed, or assigned fund balance for governmental funds since they do not constitute expenditures or liabilities.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Q. Budgetary Process - continued

Lapsing of Appropriations

At the close of each year, the unencumbered balance of each appropriation lapses and is restored to the respective fund from which it was appropriated and becomes subject to future appropriation. The encumbered appropriation balance is carried forward to the succeeding year and is not reappropriated.

NOTE 2 – BUDGETARY BASIS OF ACCOUNTING While the City reports financial position, results of operations, and changes in fund balance on the basis of generally accepted accounting principles (GAAP), the budgetary basis, as provided by law, requires accounting for certain transactions according to cash receipts, disbursements, appropriations, and encumbrances. The Statements of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - Budget (Non-GAAP) Basis, are presented on the budgetary basis to provide a meaningful comparison of actual results with the budget. The major differences between the budget basis and GAAP basis are as follows:

1. Revenues are recorded when received in cash (budget basis) as opposed to when susceptible to accrual (GAAP basis).

2. Expenditures are recorded when paid in cash (budget basis) as opposed to when the liability

is incurred (GAAP basis).

3. Outstanding year-end encumbrances are treated as expenditures (budget basis) rather than as restricted, committed or assigned fund balance (GAAP basis).

4. Advances in and advances out are operating transactions (budget basis) rather than as an

interfund receivables/payables (GAAP basis).

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NOTE 2 – BUDGETARY BASIS OF ACCOUNTING –continued The adjustments necessary to convert the results of operations for the year ended December 31, 2013, on the GAAP basis to the budget basis are as follows:

General FireFund Improvement

Net change in fund balance - GAAP Basis $ (127,004) 125,704

Net adjustment for revenue accruals (80,667) (85,163)

Net adjustment for expenditure accruals 90,033 (37,855)

Encumbrances (7,687) (5,506) Other sources (uses) 75,000 (13,501)

Net change in fund balance - Budget Basis $ (50,325) (16,321)

NOTE 3 - DEPOSITS AND INVESTMENTS The City maintains a cash deposit and investment pool for all funds. Each fund's share of cash deposits and investments is shown separately on the statement of net position and balance sheets as "Equity in Pooled Cash and Investments". State statutes classify monies held by the City into three categories. Active deposits are public deposits necessary to meet current demands on the treasury. Such monies must be maintained either as cash in the City Treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts. Inactive deposits are public deposits that Council has identified as not required for use within the current five year period of designation of depositories. Inactive deposits must be either evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including, but not limited to, passbook accounts. Interim deposits are deposits of interim moneys. Interim moneys are those moneys which are not needed for immediate use but which will be needed before the end of the current period of designation of depositories. Interim monies may be deposited or invested in the following securities:

(1) United States treasury notes, bills, bonds, or any other obligation or security issued by the United States treasury or any other obligation guaranteed as to principal or interest by the United States;

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NOTE 3 - DEPOSITS AND INVESTMENTS – continued

(2) Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including but not limited to, the Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities;

(3) Written repurchase agreements in the securities listed above, provided that the fair value of

the securities subject to the repurchase agreement must exceed the principal value of the agreement by at least two percent and be marked to fair value daily and that the term of the agreement must not exceed thirty days;

(4) Bonds and other obligations of the State of Ohio;

(5) No-load money market funds consisting exclusively of obligations described in division (1)

or (2) of this section, and repurchase agreement secured by such obligations, provided that investments in securities described in this division are made only through eligible institutions;

(6) The State Treasury Assets Reserve of Ohio (STAR Ohio );

(7) Certain banker’s acceptances and commercial paper notes for a period not to exceed one

hundred eighty days from the date of purchase in an amount not to exceed twenty-five percent of interim monies available for investment at any time; and

(8) Under limited circumstance, corporate debt interests noted in either of the two highest rating

classifications by at least two nationally recognized rating agencies.

Protection of the City’s deposits is provided by the Federal Deposit Insurance Corporation, by eligible securities pledged by the financial institution as security for repayment, by surety company bonds deposited with the treasurer by the financial institution or by a single collateral pool established by the financial institution to secure the repayment of all public moneys deposited with the institution. Investments in stripped principal or interest obligations, reverse repurchase agreements and derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. An investment must mature within five years from the date of purchase unless matched to a specific obligation or debt of the City, and must be purchased with the expectation that it will be held to maturity. Investments may only be made through specified dealers and institutions. Payment for investments may be made only upon delivery of the securities representing the investments to the treasurer or qualified trustee or, if the securities are not represented by a certificate, upon receipt of confirmation of transfer from the custodian.

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Deposits: Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. The City’s custodial credit risk policy requires that deposits be collateralized as required by ORC Chapter 135. Ohio law requires that deposits be placed in eligible banks or savings and loan associations located in Ohio. Any public depository in which the City places deposits must pledge as collateral eligible securities of aggregate market value equal to the excess of deposits not insured by the Federal Deposit Insurance Corporation (FDIC). The securities pledged as collateral are pledged to a pool for each individual financial institution in amounts equal to at least 105% of the carrying value of all public deposits held by each institution. Obligations that may be pledged as collateral are limited to obligations of the United States and its agencies and obligations of any state, county, municipal corporation or other legally constituted authority of any other state, or any instrumentality of such county, municipal corporation or other authority. Collateral is held by trustees including the Federal Reserve Bank and designated third party trustees of the financial institutions.

At December 31, 2013, the carrying amount of all City deposits was $2,113,051. $866,339 of the City’s bank balance of $2,097,107 was exposed to custodial risk as discussed above, while $1,230,768 was covered by FDIC. Investments: The City’s investments at December 31, 2013 are summarized as follows:

Fair 6 monthsInvestment Type Value or less

STAR Ohio $ 9,832 9,832

Money Market 2,567,550 2,567,550

$ 2,577,382 2,577,382

Maturity

Credit Risk: The City’s investment in STAR Ohio and the money markets have an AAAm credit rating. The City’s investment policy limits its investments to those authorized by State statute. Custodial Credit Risk: Custodial credit risk is the risk that in the event of a failure of a counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City has no investment policy dealing with investment custodial credit risk beyond the requirement in the State statute that prohibits payments for investments prior to the delivery of the securities representing such investments to the Finance Director or qualified trustee. The City’s investments were not subject to custodial credit risk.

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Concentration of Credit Risk: Concentration of credit risk is defined as the risk of loss attributed to the magnitude of a government’s investment in a single user. The City places no limit on the amount that may be invested in any one issuer. The following table includes the percentage of each investment type held by the City at December 31, 2013:

Fair PercentInvestment Type Value of Total

STAR Ohio $ 9,832 0.4%Money Market 2,567,550 99.6%

$ 2,577,382 100.0%

Interest Rate Risk: Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. In accordance with the investment policy, the City manages its exposure to declines in fair value by limiting the maximum maturity of investments in its portfolio to five years.

NOTE 4 - PROPERTY TAXES Property taxes include amounts levied against all real and public utility property located in the City. Property tax revenue received during 2013 for real and public utility property taxes represents collections of 2012 taxes. 2013 real property taxes are levied after October 1, 2013 on the assessed value as of January 1, 2013, the lien date. Assessed values are established by State law at 35 percent of appraised market value. 2013 real property taxes are collected in and intended to finance 2014. Real property taxes are payable annually or semi-annually. If paid annually, payment is due December 31; if paid semi-annually, the first payment is due December 31, with the remainder payable by June 20. Under certain circumstances, State statute permits later payment dates to be established. Public utility tangible personal property current is assessed at varying percentages of true value; public utility real property is assessed at 35 percent of true value. 2013 public utility property taxes, which became a lien December 31, 2012 are levied after October 1, 2013, and are collected in 2014 with real property taxes. The Hamilton County Treasurer collects property taxes on behalf of all taxing districts in the County, including the City of Harrison. The County Auditor periodically remits to the City its portion of the taxes collected. Property taxes receivable represents real property taxes, public utility taxes and outstanding delinquencies which are measurable as of December 31, 2013 and for which there is an enforceable legal claim. In the governmental funds, the current portion receivable has been offset by deferred inflows of resources since the current taxes were not levied to finance 2013 operations and the collection of the delinquent taxes during the available period is not subject to reasonable estimation. On a full accrual basis, collectible delinquent property taxes have been recorded as a receivable and revenue while on a modified accrual basis the revenue is reported as deferred inflows of resources.

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NOTE 5 - INCOME TAX The City levies a municipal income tax of one percent on substantially all income earned within the City. In addition, the residents of the City are required to pay income tax on income earned outside of the City; however, the City allows a credit for income taxes paid to another municipality up to 100% of the City’s current tax rate. Employers within the City are required to withhold income tax on employee compensation and remit the tax to the City monthly or quarterly. Corporations and other individual taxpayers are required to pay their estimated tax quarterly and file a declaration annually. NOTE 6 - INTERFUND ACTIVITY Interfund activity as reported in the fund financial statements includes transfers, advances to/from funds and interfund rececivable/payable. The following represent the transfers during 2013:

Transfers In Transfers Out

General Fund $ - 2,226,915 Fire Improvement 1,420,702 - Home Depot TIF 70,201 Nonmajor governmental funds 1,055,306 150,423

Nonmajor enterprise fund - 28,469

$ 2,476,008 2,476,008

Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them; to move unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations; to provide additional resources for current operations or debt service; and to return money to the fund from which it was originally provided once a project is completed and to segregate money for anticipated capital projects. Transfers between governmental funds are eliminated for reporting on the statement of activities. All transfers were done in accordance with Ohio Revised Code. The following represent the outstanding advances to/from other funds as of December 31, 2013:

Advances to Advances fromOther Funds Other Funds

General Fund $ 150,411 - Nonmajor governmental funds - 35,411 Sewer 17,178 - Nonmajor enterprise funds - 132,178

$ 167,589 167,589

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NOTE 6 - INTERFUND ACTIVITY – continued Advances to/from other funds are long-term interfund loans that are not expected to be repaid in the subsequent year. Advances to/from other funds between governmental funds are eliminated for reporting on the statement of net position. Advances to/from other funds between governmental activities and business-type activities are reported as a component of the “internal balance” reported on the statement of net position. NOTE 7 - CAPITAL ASSETS Capital asset activity for the year ended December 31, 2013 was as follows:

Beginning EndingBalance Increases Decreases Balance

Governmental Activities

Capital assets not being depreciated:Land $ 3,015,891 - - 3,015,891

Construction in progress 1,127,456 1,405,022 (1,840,429) 692,049

Total capital assets not being depreciated 4,143,347 1,405,022 (1,840,429) 3,707,940

Capital assets being depreciated:Land improvements 804,817 - - 804,817 Buildings and improvements 3,946,240 8,750 - 3,954,990 Furniture and equipment 737,046 12,323 (19,800) 729,569

Vehicles 2,687,974 22,257 (104,408) 2,605,823

Infrastructure 10,573,042 1,840,429 - 12,413,471

Total capital assets being depreciated 18,749,119 1,883,759 (124,208) 20,508,670

Less accumulated depreciation:Land improvements (739,089) (23,226) - (762,315) Buildings and improvements (1,792,984) (76,760) - (1,869,744) Furniture and equipment (491,641) (20,517) 19,800 (492,358) Vehicles (1,321,599) (205,853) 104,408 (1,423,044)

Infrastructure (831,700) (210,748) - (1,042,448)

Total accumulated depreciation (5,177,013) (537,104) 124,208 (5,589,909)

Total capital assets being depreciated, net 13,572,106 1,346,655 - 14,918,761

Capital assets, net $ 17,715,453 2,751,677 (1,840,429) 18,626,701

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NOTE 7 - CAPITAL ASSETS – continued Depreciation expense was charged to governmental functions as follows:

General government $ 91,142 Security of persons and property 246,666 Public health services 3,975 Transportation 171,082

Leisure time activities 24,239

Total depreciation expense $ 537,104

Beginning EndingBalance Increases Decreases Balance

Business-Type Activities

Capital assets not being depreciated:

Land $ 485,420 - - 485,420

Construction in progress 452,702 - (452,702) -

Total capital assets not being depreciated 938,122 - (452,702) 485,420

Capital assets being depreciated:Land improvements 24,474 - - 24,474 Buildings and improvements 10,030,905 191,000 (41,803) 10,180,102 Furniture and equipment 7,517,309 - - 7,517,309 Vehicles 456,407 - - 456,407

Infrastructure 32,480,737 261,702 - 32,742,439

Total capital assets being depreciated 50,509,832 452,702 (41,803) 50,920,731

Less accumulated depreciation:Land improvements (24,474) - - (24,474) Buildings and improvements (3,190,755) (198,634) 40,967 (3,348,422) Furniture and equipment (4,666,279) (440,694) (5,106,973) Vehicles (314,015) (7,188) - (321,203)

Infrastructure (6,817,414) (630,437) - (7,447,851)

Total accumulated depreciation (15,012,937) (1,276,953) 40,967 (16,248,923)

Total capital assets being depreciated, net 35,496,895 (824,251) (836) 34,671,808

Capital assets, net $ 36,435,017 (824,251) (453,538) 35,157,228

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NOTE 7 - CAPITAL ASSETS – continued Depreciation expense was charged to segments as follows:

Major enterprise fundsWater $ 422,298 Sewer 808,042

Nonmajor enterprise fund

Storm water 46,613

Total depreciation expense $ 1,276,953

NOTE 8 - DEFINED BENEFIT PENSION PLANS Ohio Public Employees Retirement System The City participates in the Ohio Public Employees Retirement System (OPERS). OPERS administers three separate pension plans. The Traditional Pension Plan is a cost-sharing, multiple-employer defined benefit pension plan. The Member-Directed Plan is a defined contribution plan in which the member invests both member and employer contributions (employer contributions vest over five years at 20 percent per year). Under the Member Directed Plan, members accumulate retirement assets equal to the value of the member and (vested) employer contributions plus any investment earnings. The Combined Plan is a cost-sharing, multiple-employer defined benefit pension plan. Under the Combined Plan, OPERS invests employer contributions to provide a formula retirement benefit similar in nature to, but less than, the Traditional Pension Plan benefit. Member contributions, the investment of which is self-directed by the members, accumulate retirement assets in a manner similar to the Member-Directed Plan. OPERS provides retirement, disability, survivor and death benefits and annual cost of living adjustments to members of the Traditional Pension and Combined Plans. Members of the Member Directed Plan do not qualify for ancillary benefits. Authority to establish and amend benefits is provided by Chapter 145 of the Ohio Revised Code. OPERS issues a stand-alone financial report that may be obtained by writing to OPERS, Attention: Finance Director, 277 East Town Street, Columbus, OH 43215-4642, by visiting https://www.opers.org/investments/cafr.shtml, or by calling (614) 222-6705 or (800) 222-7377. The Ohio Revised Code provides statutory authority for member and employer contributions. For 2013, member and employer contribution rates were consistent across all three plans. The 2013 member contribution rates were 10% of their annual salary for members in state and local classifications. The City was required to contribute 14% of covered payroll for employees. The City's required contributions to OPERS for pension obligations for the years ended December 31, 2013, 2012, and 2011 were $268,000, $188,000, and $213,000 respectively; 92% has been contributed for 2013 and 100% for 2012 and 2011.

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NOTE 8 - DEFINED BENEFIT PENSION PLANS – continued Ohio Police and Fire Pension Fund The City contributes to the Ohio Police and Fire Pension Fund (OP&F), a cost-sharing multiple- employer defined benefit pension plan. OP&F provides retirement and disability benefits, annual cost of living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by the Ohio State Legislature and are codified in Chapter 742 of the Ohio Revised Code. OP&F issues a publicly available financial report that includes financial information and required supplementary information for the plan. That report may be obtained by writing to Ohio Police & Fire Pension Fund, 140 East Town Street, Columbus, Ohio 43215-5164. From January 1, 2013 thru July 1, 2013, plan members were required to contribute 10.0% of their annual covered salary. From July 2, 2013 thru December 31, 2013, plan members were required to contribute 10.75% of their annual covered salary. Throughout 2013, the City is required to contribution 19.5% and 24.0%, respectively for police officers and firefighters. The City's required contributions for pension obligations to OP&F for the years ended December 31, 2013, 2012, and 2011 were $691,000, $493,000 and $475,000, respectively; 93% has been contributed for 2013 and 100% for 2012 and 2011. NOTE 9 - POSTEMPLOYMENT BENEFITS Ohio Public Employees Retirement System OPERS maintains a cost-sharing multiple employer defined benefit postemployment healthcare plan, which includes a medical plan, prescription drug program and Medicare Part B premium reimbursement, to qualifying members of both the Traditional Pension and the Combined Plans. Members of the Member-Directed Plan do not qualify for ancillary benefits, including postemployment health care coverage. In order to qualify for postemployment health care coverage, age-and-service retirees under the Traditional Pension and Combined Plans must have 10 or more years of qualifying Ohio service credit. Health care coverage for disability benefit recipients and qualified survivor benefit recipients is available. The health care coverage provided by OPERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement 45. The Ohio Revised Code permits, but does not mandate, OPERS to provide OPEB benefits to its eligible members and beneficiaries. Authority to establish and amend benefits is provided in Chapter 145 of the Ohio Revised Code. The Ohio Revised Code provides the statutory authority requiring public employers to fund post retirement health care through their contributions to OPERS. A portion of each employer’s contribution to OPERS is set aside for the funding of post retirement health care benefits. Employer contribution rates are expressed as a percentage of the covered payroll of active members. In 2013, state and local employers contributed at a rate of 14% of covered payroll. This is the maximum employer contribution rate permitted by the Ohio Revised Code. Active members do not make contributions to the OPEB Plan.

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NOTE 9 - POSTEMPLOYMENT BENEFITS – continued Ohio Public Employees Retirement System – continued OPERS’ Post Employment Health Care plan was established under, and is administrated in accordance with, Internal Revenue Code 401(h). Each year, the OPERS Board of Trustees determines the portion of the employer contribution rate that will be set aside for funding of post employment health care benefits. The portion of employer contributions allocated to health care for members in the Traditional Pension Plan was 1.0% during calendar year 2013. The portion of employer contributions allocated to health care for members in the Combined Plan was 1.0% during calendar year 2013. Effective January 1, 2014, the portion of the employer contributions allocated to health care was raised to 2% for both plans, as recommended by the OPERS Actuary. The OPERS Board of Trustees is also authorized to establish rules for the retiree, or their surviving beneficiaries, to pay a portion of the health care benefits provided. Payment amounts vary depending on the number of covered dependents and the coverage selected. The City’s contributions for 2013, 2012 and 2011 which were used to fund postemployment benefits were $21,000, $75,000, and $85,000, respectively; 92% has been contributed for 2013 and 100% for 2012 and 2011. Changes to the health care plan were adopted by the OPERS Board of Trustees on September 19, 2012, with a transition plan commencing January 1, 2014. With the recent passage of pension legislation under SB 343 and the approved health care changes, OPERS expects to be able to consistently allocate 4% of the employer contributions toward the health care fund after the end of the transition period. Ohio Police and Fire Pension Fund The City contributes to the OP&F sponsored health care program, a cost-sharing multiple-employer defined postemployment health care plan administered by OP&F. OP&F provides healthcare benefits including coverage for medical, prescription drugs, dental, vision, Medicare Part B Premium and long term care to retirees, qualifying benefit recipients and their eligible dependent.

OP&F provides access to post-retirement health care coverage for any person who receives or is eligible to receive a monthly service, disability, or statutory survivor benefit or is a spouse or eligible dependent child of such person. The health care coverage provided by OP&F meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement 45. The Ohio Revised Code allows, but does not mandate OP&F to provide OPEB benefits. Authority for the OP&F Board of Trustees to provide health care coverage to eligible participants and to establish and amend benefits are codified in Chapter 742 of the Ohio Revised Code. The Ohio Revised Code provides for contribution requirements of the participating employers and of plan members to the OP&F (defined benefit pension plan). Participating employers are required to contribute to the pension plan at rates expressed as percentages of payroll of active pension members, currently 19.5% and 24.0% of covered payroll for police and fire employers, respectively. The Ohio Revised Code states that the employer contribution may not exceed 19.5% of covered payroll for police employer units and 24.0% of covered payroll for fire employer units. Active members do not make contributions to the OPEB Plan.

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NOTE 9 - POSTEMPLOYMENT BENEFITS – continued Ohio Police and Fire Pension Fund – continued

OP&F maintains funds for health care in two separate accounts. One for health care benefits under an IRS Code Section 115 trust and one for Medicare Part B reimbursements administrated as an Internal Service Code 401(h) account, both of which are within the defined benefit pension plan, under the authority granted by the Ohio Revised Code to the OP&F Board of Trustees.

The Board of Trustees is authorized to allocate a portion of the total employer contributions made into the pension plan to the Section 115 trust and the Section 401(h) account as the employer contribution for retiree health care benefits. The portion of employer contributions allocated to health care was 4.69% of covered payroll from January 1, 2013 thru May 31, 2013 and 2.85% of covered payroll from June 1, 2013 thru December 31, 2013. The amount of employer contributions allocated to the health care plan each year is subject to the Trustees’ primary responsibility to ensure that pension benefits are adequately funded and is limited by the provisions of Sections 115 and 401(h). The City’s actual contributions for 2013, 2012 and 2011 that were used to fund post-employment benefits were $146,000, $222,000 and $214,000, respectively; 93% has been contributed for 2013 and 100% for 2012 and 2011. The OP&F Board of Trustees also is authorized to establish requirements for contributions to the health care plan by retirees and their eligible dependents, or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected. NOTE 10 - OTHER EMPLOYEE BENEFITS Compensated Absences Accumulated Unpaid Vacation and Compensatory Time City employees earn vacation leave at varying rates based upon length of service. In the case of death or separation from employment, an employee (or their estate) is paid for any unused vacation or compensatory leave. The obligation for accrued unpaid vacation time for the City as a whole amounted to $79,642 at December 31, 2013. Accumulated Unpaid Sick Leave City employees earn sick leave at the varying rates. Sick leave is cumulative without limit. In the event of death or separation, an employee is paid for a percentage of their accumulated sick leave up to a maximum. The obligation for accrued unpaid sick leave for the City as a whole amounted to $861,181 at December 31, 2013. NOTE 11 - RISK MANAGEMENT Risk Pool Membership The City belongs to the Ohio Plan Risk Management, Inc. (OPRM) – formerly known as the Ohio Risk Management Plan, (the “Plan”), a non-assessable, unincorporated nonprofit association providing a formalized, jointly administered self-insurance risk management program and other administrative services to Ohio governments (“Members”). The Plan is legally separate from its member governments.

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NOTE 11 - RISK MANAGEMENT – continued Pursuant to Section 2744.081 of the Ohio Revised Code, the Plan provides property, liability, errors and omissions, law enforcement, automobile, excessive liability, crime, surety and bond, inland marine and other coverage to its members sold through fourteen appointed independent agents in the State of Ohio. OPRM coverage programs are developed specific to each member’s risk management needs and the related premiums for coverage are determined through the application of uniform underwriting criteria addressing the member’s exposure to loss, except OPRM retains 50% (effective November 1, 2012 and 41.5% effective November 1, 2011, 40% through October 31, 2011 and 17.5% through October 31, 2010) of the premium and losses on the first $250,000 casualty treaty and 10% of the first $1,000,000 property treaty. Members are only responsible for their self-retention (deductible) amounts, which vary from member to member. OPRM had 767 and 765 members as of December 31, 2012 and 2011, respectively. Settlement amounts did not exceed insurance coverage for the past three fiscal years. The Pool’s audited financial statements conform to accounting principles generally accepted in the United States of America and reported the following assets, liabilities and retained earnings at December 31, 2012 and 2011 (latest available):

2012 2011

Assets 13,100,381$ 12,501,280$ Liabilities (6,687,193) (5,328,761)

Members' Equity 6,413,188$ 7,172,519$ You can read the complete audited financial statements for the OPRM at the Plan’s website, www.ohioplan.org. Health Insurance During 2013, the City provided employees insurance for medical, dental, and life through Humana Insurance. The premiums for health, dental and accident and life insurance are paid monthly with the City paying one-hundred percent of the cost up to $797.00 per employee. Anything above this cap amount is split by the City and the employees per union contracts. The risk of loss transfers to the insurance carrier upon payment of the premium by the City. Workers’ Compensation Workers’ compensation claims are covered through the State of Ohio Workers Compensation Retrospective Plan. The City’s MCO is Sheakley Unicorp. There has been no significant reduction in insurance coverage from the prior year. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three years.

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NOTE 12 - LONG-TERM LIABILITIES The following is a summary of changes during 2013 and balances for governmental activities’ long-term liabilities of the City as of December 31, 2013:

DueBeginning Ending WithinBalance Additions Reductions Balance One Year

Governmental activities:

General Obligation Bonds2005 Road and safety refunding bonds 1,700,000$ -$ (210,000)$ 1,490,000$ 220,000$ 2009 Various purpose - Harrison Ave bike trail 1,125,000 - (25,000) 1,100,000 25,000 2009 Various purpose - sidewalks 630,000 - (25,000) 605,000 25,000 Add premium on issuance 78,256 - (3,020) 75,236 -

OPWC loans2006 Jefferson Avenue project 318,891 - (23,622) 295,269 23,622 2009 Kater Street improvements 498,203 - (28,469) 469,734 28,469 2011 Carolina Trace improvements 668,762 - (34,295) 634,467 34,296 2012 Harrison Avenue improvements 184,743 - (9,237) 175,506 9,237

ODOT loan2006 New Haven bridge 263,188 - (72,418) 190,770 74,608

Other long-term obligationsCapital leases 1,499,017 - (305,246) 1,193,771 298,155 Compensated absences 762,955 103,263 (67,191) 799,027 99,492

Total governmental activities long-term obligations 7,729,015$ 103,263$ (803,498)$ 7,028,780$ 837,879$

General Obligation Bonds On August 11, 2005, the City issued $2,135,000 in Series 2005 general obligation refunding bonds to finance road and safety improvements. The bonds bear interest rates ranging from 4.25% to 4.75% per annum and mature in various installments through December 1, 2019. The proceeds of the bonds were used to advance refund the Series 2000 various purpose general obligation bonds that were called in December 2010. General Obligation Various Purpose Improvement Bonds On December 10, 2009, the City issued $1,810,000 in Series 2009 various purpose general obligation bonds. The issue was split to provide financing for the construction of the Harrison Avenue bike trail and the construction of sidewalks. The bonds bear interest rates ranging from 2.0% to 5.25% and are scheduled to mature December 1, 2038. The general obligations are backed by the full faith and credit of the City and will be repaid from the Debt Service Fund.

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NOTE 12 - LONG-TERM LIABILITIES – continued OPWC Loans The City’s Jefferson Avenue, Kater Street, Carolina Trace, and Harrison Avenue improvement projects were financed through interest-free loans by the Ohio Public Works Commission (OPWC). The Jefferson Avenue project loan is payable in semi-annual installments that began in 2006 and will mature in 2026. The Kater Street improvements project loan is payable in semi-annual payments that began in 2010 and will mature in 2030. The Carolina Trace improvements project was completed in 2012. The loan for this project is payable in semi-annual payments with the first payment due in July 2012 and will mature in 2032. The Harrison Avenue improvements project is payable in semi-annual payments that began in 2013 and will mature in 2032. These loans are being repaid from the Debt Service Fund. ODOT Loan The City borrowed $564,170 from the Ohio Department of Transportation (ODOT) to finance the City’s portion of the ODOT project to widen New Haven Road over Interstate 74. The loan bears interest rates ranging from 0% to 5%. Payments are payable in semi-annual installments with a maturity in 2016. This loan is being repaid from the Debt Service Fund Compensated Absences Compensated absences for governmental activities will be liquidated by the fund which pays the employee’s salary, with the General Fund being the most significant fund. The following is a summary of the City’s future annual debt service principal and interest requirements for government-type activities long term-obligations:

OPWCYear EndingDecember 31, Principal Interest Principal Interest Principal Interest Principal

2014 50,000$ 80,612$ 220,000$ 65,575$ 74,608$ 5,168$ 95,624$ 2015 50,000 79,362 230,000 55,125 76,863 2,913 95,624 2016 50,000 77,863 245,000 44,200 39,299 598 95,624 2017 55,000 76,362 255,000 33,788 - - 95,624 2018 55,000 74,575 265,000 22,950 - - 95,624

2019-2023 310,000 339,650 275,000 11,688 - - 478,116 2024-2028 395,000 258,563 - - - - 419,057 2029-2033 400,000 147,001 - - - - 199,683 2034-2038 340,000 55,388 - - - - -

Total 1,705,000$ 1,189,376$ 1,490,000$ 233,326$ 190,770$ 8,679$ 1,574,976$

Governmental Activities

Refunding Series - 2005Various Purpose Series - 2009 ODOT Loan

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NOTE 12 - LONG-TERM LIABILITIES – continued The following is a summary of changes during 2013 and balances for business-type activities’ long-term liabilities of the City as of December 31, 2013:

DueBeginning Ending WithinBalance Additions Reductions Balance One Year

Business-type activities:

General Obligation Bonds2005 Sanitary Sewer Improvements 330,000$ -$ (20,000)$ 310,000$ 20,000$ 2010 Sanitary Sewer Improvements 5,200,000 - (150,000) 5,050,000 155,000

Add premium on issuance 144,248 - (6,272) 137,976 -

Revenue bond2012 Revenue Refunding 16,150,000 - (780,000) 15,370,000 805,000

Add premium on issuance 242,191 - (15,300) 226,891 -

OPWC loansState Street/Campbell Road sewer 1,384,626 - (92,308) 1,292,318 92,308 Etta, Lellan and Joyce Avenue improvement 346,995 - (21,030) 325,965 21,030

OWDA loansWater treatment plant 598,168 - (57,049) 541,119 59,071 New Biddinger Rd./Caroline Trace Rd. water mains 1,417,556 - (83,553) 1,334,003 85,942 Wellfield/transmission water mains 292,396 - (67,753) 224,643 70,241 Marvin Rd./Carolina Trace water mains 1,465,981 - (65,471) 1,400,510 67,876 New Haven/Baughman Rd. water mains 66,999 - (32,994) 34,005 34,005 Elevated water storage tank 1,447,195 - (63,860) 1,383,335 66,205

Other long-term obligationsCapital leases 70,676 - (26,785) 43,891 27,506 Compensated absences 151,530 34,443 (11,129) 174,844 13,198

Total business-type activities long-term obligations 29,308,561$ 34,443$ (1,493,504)$ 27,849,500$ 1,517,382$

General Obligation Bonds On August 11, 2005, the City issued $510,000 in general obligation bonds to finance sanitary sewer improvements. The bonds bear interest rates ranging from 4.125% to 4.75% per annum and mature in various installments through December 1, 2024. On December 9, 2010, the City issued $5,490,000 in general obligation sewer system improvement bonds for the purpose of retiring outstanding notes that were used to finance various improvements to the wastewater system. Serial bonds of $1,600,000 range in interest rates of 2.0% to 3.4% and mature in 2020. Term bonds of $3,890,000 range in interest rates of 3.75% to 5.25% and mature at varying times from 2022 to 2035.

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NOTE 12 - LONG-TERM LIABILITIES – continued Revenue bonds On September 15, 2003, the City issued $18,750,000 in wastewater system revenue improvements and refunding bonds. The bond issue consisted of $16,445,000, $10,000,000 of which was used to retire bond anticipation notes and $2,305,000 to currently refund the callable portion of the 1993 sewer system improvements mortgage revenue bonds. On May 4, 2012, the City issued $16,550,000 in wastewater system revenue refunding bonds. The proceeds of the issuance were used to advance refund the outstanding balance of the 2003 wastewater system revenue improvements and refunding bonds. The advance refunding resulted in an economic gain (difference between the present values of the debt service payment on the old and new bonds) of $1,000,564. The interest rates on the Series 2012 bonds range from 2% and 4% and will fully mature in 2028. The general obligation bonds and mortgage revenue bonds are expected to be retired with revenues of the sewer fund. General obligation bonds are secured by the City’s ability to levy a voted or unvoted property tax within the limitations of Ohio law. The City has pledged future sewer customer revenues, net of specified operating expenses, to repay $16,550,000 in Series 2012 wastewater system revenue refunding bonds. Principal and interest paid for the current year and net revenue available for debt service were $1,305,581 and $1,580,946, respectively. OPWC Loans Improvements to the City’s water treatment facilities and State Street/Campbell Road and Etta, Lellan and Joyce Ave. improvements were financed through expenditures by the Ohio Public Works Commission (OPWC). At December 31, 2013, the City has two interest-free loans outstanding through the OPWC payable from business-type activities. The loans are payable in semi-annual installments of principal. The amounts due to the OPWC are payable solely from sewer and storm water revenues. OWDA Loans The City has entered into debt financing arrangements through the Ohio Water Development Authority (OWDA) to fund construction projects. The amounts due to the OWDA are payable solely from water revenues. The loan agreements function similar to a line-of-credit agreement. At December 31, 2013, the City has outstanding borrowings of $4,917,615. The loans are payable in semi-annual payments with interest rates ranging from 2.84% to 3.64%. The future annual debt service principal and interest requirements disclosed were based on the balances outstanding as of December 31, 2013. Compensated Absences Compensated absences for business-type activities will be paid from the sewer and water enterprise funds.

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NOTE 12 - LONG-TERM LIABILITIES – continued Principal and interest requirements to retire the City’s outstanding obligations at December 31, 2013 were:

OPWCYear EndingDecember 31, Principal Interest Principal Interest Principal Principal Interest

2014 175,000$ 239,033$ 805,000$ 502,181$ 113,338$ 383,340$ 200,121$ 2015 180,000 234,982 835,000 468,181 113,338 361,385 171,592 2016 185,000 230,308 870,000 436,581 113,338 373,853 159,122 2017 190,000 225,245 905,000 401,781 113,338 314,574 171,957 2018 195,000 219,232 940,000 365,581 113,338 318,964 121,119

2019-2023 1,085,000 991,065 5,115,000 1,414,606 566,692 1,612,175 470,402 2024-2028 1,175,000 754,819 5,900,000 623,306 474,386 1,389,992 231,102 2029-2033 1,475,000 423,937 - - 10,515 163,332 73,311 2034-2038 700,000 55,650 - - - - -

Total 5,360,000$ 3,374,271$ 15,370,000$ 4,212,217$ 1,618,283$ 4,917,615$ 1,598,726$

General Obligation Bonds Revenue Refunding Bonds OWDA


NOTE 13 – SHORT-TERM OBLIGATIONS

Issue Maturity Interest Balance BalanceDate Date Rate 12/31/2012 Increase Decrease 12/31/2013

Governmental Activities:Bond anticipation note 10/25/12 10/24/13 1.65% 1,525,000$ -$ (1,525,000)$ -$ Tax anticipation note 10/25/12 10/24/13 2.75% 310,000 - (310,000) - Bond anticipation note 10/24/13 10/23/14 1.75% - 1,525,000 - 1,525,000 Tax anticipation note 10/24/13 10/23/14 2.625% - 305,000 - 305,000

Total 1,835,000$ 1,830,000$ (1,835,000)$ 1,830,000$ On October 25, 2012, the City retired $320,000 in tax anticipation notes and reissued $310,000 notes in anticipation of taxes from the fire improvement levy for providing ambulance, paramedic and emergency medical services. The notes had an interest rate of 2.75%. On October 24, 2013, the City issued $305,000 in tax anticipation notes that provided funding to rollover the October 2012 tax anticipation notes. These notes bear an interest rate of 2.625% and mature on October 23, 2014. On October 25, 2012, the City issued $1,525,000 in bond anticipation notes, $1,250,000 in the Home Depot TIF Fund and $275,000 in the Capital Improvements Fund, to finance the construction of new roads and infrastructure. The notes bear had an interest rate of 1.65%. On October 24, 2013, the City issued $1,525,000 in bond anticipation notes that provided funding to rollover the October 2012 bond anticipation notes. These notes bear an interest rate of 1.75% and mature on October 23, 2014.

69



NOTE 14 – CAPITAL LEASES In prior years, the City entered into several capitalized leases for assets including police vehicles, street sweeper, paramedic vehicles, fire trucks, staff vehicles and various equipment. The leases met the criteria of a capital lease as defined by GASB, which defines a capital lease generally as one which transfers benefits and risks of ownership to the lessee. Capital lease payments have been reclassified and are reflected as debt service expenditures in the governmental funds. These expenditures are reported as function expenditures on the budgetary statements. For enterprise funds, fund capital assets acquired by capital lease and the related liability and interest expense have been reported in the water fund. Capital assets consisting of vehicles and equipment have been capitalized in the statement of net position in the amount of $1,997,494 for the governmental activities and $81,623 in the business-type activities. The following is a schedule of the future long-term minimum lease payments required under the capital leases and the present value of the minimum lease payments as of December 31, 2013.

Governmental Business-TypeYear Ending December 32, Activities Activities

2014 344,404$ 28,338$ 2015 296,052 16,530 2016 181,551 - 2017 114,975 - 2018 88,327 -

2019-2022 356,332 -

Total 1,381,641$ 44,868$ Less: amount representing interest (187,870) (977)

Present value of net minimum lease payments 1,193,771$ 43,891$

NOTE 15 - CONTRACTUAL COMMITMENTS The City has active projects as of December 31, 2013 for items such as improvements to sewer and water systems, street improvements, architectural and design contracts among others. The City has approximately $806,000 remaining on these active projects that were encumbered in the Capital Improvement and Home Depot TIF funds. NOTE 16 - CONTINGENT LIABILITIES Litigation The City is of the opinion that ultimate disposition of claims and legal proceedings will not have a material effect on the financial condition of the City. Federal and State Grants The City received federal and state grants for specific purposes that are subject to review and audit by grantor agencies or designee. Such audits could lead to a request for reimbursement to the grantor agency for expenditures disallowed under the terms of the grant. The City believes all expenditures meet grant qualifications.

70



NOTE 17 - FUND BALANCES Fund balance is classified as nonspendable, restricted, assigned and unassigned based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The constraints placed on fund balance for the major governmental funds and nonmajor governmental funds are presented below:

Home Other TotalGeneral Fire Depot Governmental Governmental

Fund Balances Fund Improvement TIF Funds Funds

NonspendablePrepaids $ 9,371 9,167 - 6,397 24,935 Inventory - - - 10,057 10,057 Advances 150,411 - - - 150,411

Total Nonspendable 159,782 9,167 - 16,454 185,403

Restricted forPublic safety - - - 5,854 5,854 Senior Center - - - 14,040 14,040 Recreation - - - 484,113 484,113 Transportation - - - 54,007 54,007 Municipal court - - - 13,532 13,532 Special assessments - - - 23,228 23,228 Capital projects - - - 10,227 10,227 Other purposes - - - 3,766 3,766

Total Restricted - - - 608,767 608,767

Assigned toPublic safety - - - 913 913 Debt service - - - 385,239 385,239 Recreational activities 34,888 - - - 34,888 Encumbrances 6,348 - - - 6,348 Budget resource 352,060 - - - 352,060

Total Assigned 393,296 - - 386,152 779,448

Unassigned (Deficit) - (332,263) (843,967) (149,378) (1,325,608)

Total Fund Balance $ 553,078 (323,096) (843,967) 861,995 248,010

71



NOTE 17 - FUND BALANCES – continued At December 31, 2013, the following deficit fund balances were reported:

Fund DeficitFire Improvement 323,096$ Home Depot TIF 843,967 Nonmajor Govermental Funds:

State Highway Improvements 13,259 Fire Memorial 7,364 Community Center 2,005 Police Pension 25,334 Capital Improvements 99,499

Sewer 275,459 These deficits resulted from the accrued but unpaid liabilities that are not payable from current period revenue and do not exist on a budget basis. The General Fund provides transfers to cover fund deficit balances; however, this is done when cash is needed. The City also had budgetary basis deficit fund balances due to grants and loans that were in the process of collection. NOTE 18 - CHANGE IN ACCOUNTING PRINCIPLES AND RESTATEMENT The City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 61, The Financial Reporting Entity: Omnibus and amendment of GASB Statements No. 14 and No. 34, GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, and GASB Statement No. 66, Technical Corrections-2012-an amendment of GASB Statements No. 10 and No. 62. GASB Statement No. 61 modifies certain requirements for inclusion of component units in the financial reporting entity. GASB Statement No. 65 reclassifies certain items that were previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of resources or recognizes certain items that were previously reported as assets and liabilities as outflows of resources (expenses/expenditures) or inflows of resources (revenues). GASB Statement No. 66 resolves conflicting accounting and financial reporting guidance that could diminish the consistency of financial reporting and thereby enhance the usefulness of the financial reports. The implementation of GASB Statement No. 61 and No. 66 did not have an effect on the financial statements of the City. The implementation of GASB Statement No. 65 had the following effect on beginning net position in the proprietary fund and government-wide financial statements:

Sewer

Net Position at December 31, 2012 $ 213,650 Recognition of bond issue costs as outflows (462,670)

Restated Net Position at December 31, 2012 $ (249,020)

72



NOTE 18 - CHANGE IN ACCOUNTING PRINCIPLES AND RESTATEMENT – continued

Governmental Business-Type

Activities Activities

Net Position at December 31, 2012 $ 12,298,176 12,404,914 Recognition of bond issue costs as outflows (78,256) (462,670)

Restated Net Position at December 31, 2012 $ 12,219,920 11,942,244

73


74

Combining Financial Statements And Individual Fund Schedules

75


76

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) Basis

General Fund


Revenues:Property and other taxes $ 1,080,030 1,153,529 1,082,336 (71,193) Income taxes 3,250,000 3,231,000 3,078,874 (152,126) Intergovernmental 423,274 469,700 443,137 (26,563) Fines, costs and forfeitures 210,000 115,000 112,781 (2,219) Licenses, permits and inspections 307,500 298,000 303,753 5,753 Interest 35,000 20,000 22,424 2,424 Contributions 3,500 500 125 (375) Other 42,500 27,388 15,564 (11,824)

Total revenues 5,351,804 5,315,117 5,058,994 (256,123)

Expenditures:Current: General government

Planning commission Personal Services 55 55 41 14 Operations/maintenance 500 500 - 500

Total planning commission 555 555 41 514

Information technology Operations/maintenance 40,524 13,810 10,142 3,668

Income tax Personal services 66,831 66,831 62,164 4,667 Operations/maintenance 114,153 114,153 98,736 15,417 Refunds/reimbursements 8,717 8,717 8,717 -

Total income tax 189,701 189,701 169,617 20,084

Mayor Personal services 25,111 10,566 10,497 69 Operations/maintenance 1,294 517 436 81

Total mayor 26,405 11,083 10,933 150

Council Personal services 48,218 22,523 22,140 383 Operations/maintenance 41,603 21,095 20,697 398

Total council 89,821 43,618 42,837 781

Economic development Personal services 89,439 16,765 16,472 293 Operations/maintenance 62,719 28,436 6,674 21,762 Capital improvements 1,000 1,000 - 1,000

Total economic development 153,158 46,201 23,146 23,055

(Continued)


Budgeted Amounts

77


General Fund



Budgeted Amounts

Finance Personal services 145,571 59,571 56,869 2,702 Operations/maintenance 54,012 24,639 18,522 6,117

Total finance 199,583 84,210 75,391 8,819

Custodian Operations/maintenance 5,000 5,000 4,948 52

Total custodian 5,000 5,000 4,948 52

Civil service Personal services 36 43 40 3 Operations/maintenance 2,449 1,591 713 878

Total civil service 2,485 1,634 753 881

Law director Personal services 38,952 16,350 5,121 11,229 Operations/maintenance 38,952 16,350 2,751 13,599

Total law director 77,904 32,700 7,872 24,828

Magistrate Personal services 66,103 82,103 79,970 2,133 Operations/maintenance 7,132 6,132 4,370 1,762

Total magistrate 73,235 88,235 84,340 3,895

General government Operations/maintenance 53,860 53,860 35,308 18,552

Elections Operations/maintenance 2,000 2,000 - 2,000

Total general government 914,231 572,607 465,328 107,279

Security of persons and propertyLaw enforcement Personal services 2,030,154 2,065,154 2,020,288 44,866 Operations/maintenance 323,296 323,296 309,071 14,225 Capital improvements 500 500 580 (80)

Total law enforcement 2,353,950 2,388,950 2,329,939 59,011

Street lighting Operations/maintenance 79,589 79,589 77,417 2,172

Total security of persons and property 2,433,539 2,468,539 2,407,356 61,183

(Continued)

78


General Fund



Budgeted Amounts

Public heath and welfareBoard of health Operations/maintenance 13,260 13,260 13,259 1

Total public health services 13,260 13,260 13,259 1

Community and economic developmentBuilding department Personal services 36,414 14,798 12,314 2,484 Operations/maintenance 67,892 20,059 16,174 3,885

Total building department 104,306 34,857 28,488 6,369

Zoning department Personal services 55 55 37 18 Operations/maintenance 1,950 1,950 745 1,205

Total zoning department 2,005 2,005 782 1,223

Total community and economic development 106,311 36,862 29,270 7,592

Leisure time activityParks and recreation Personal services 17,134 17,134 16,542 592 Operations/maintenance 39,900 29,900 25,243 4,657 Capital improvements 1,000 1,000 406 594

Total parks and recreation 58,034 48,034 42,191 5,843

Total leisure time activity 58,034 48,034 42,191 5,843


Excess of revenues over expenditures 1,826,429 2,175,815 2,101,590 (74,225)

Other financing sources (uses):Transfers out (2,131,885) (2,371,885) (2,226,915) 144,970 Advances in 50,000 75,000 75,000 -

Total other financing sources (uses) (2,081,885) (2,296,885) (2,151,915) 144,970

Net change in fund balance (255,456) (121,070) (50,325) 70,745

Fund balance, beginning of year 38,999 38,999 38,999 Prior year encumbrances appropriated 10,584 10,584 10,584

Fund balance, end of year $ (205,873) (71,487) (742)

79


80

NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

To account for the proceeds of specific revenue sources (other than expendable trust or major capital projects) that are legally restricted or committed to expenditure for specific purposes. Street Maintenance and Repair This fund accounts for the portion of state gasoline tax and motor vehicle registration fees restricted for the maintenance of the streets within the City. State Highway Improvements This fund accounts for the portion of state gasoline tax and motor vehicle registration fees restricted for the maintenance of the state highways within the City. Fire Memorial This fund accounts for donations received by the local fire department. Community Center This fund accounts for transfers in from the general fund and funds received from Harrison Township to finance the maintenance and operation of the community center. Fire Capital Reserve This fund accounts for transfers from the fire department to be used for capital improvement purchases. Senior Center This fund accounts for receipts from the Council on Aging of Southwestern Ohio. This fund also accounts for transfers in from the general fund, which finances meals and recreational programs to senior citizens of the Harrison community. Passport Account This fund accounts for the funds received from the Council on Aging of Southwestern Ohio. Court Computer This fund accounts for the collection of fees to pay the cost of computerized legal research. Project Lifesaver This fund accounts for program donations and expenditures for the Project Lifesaver program, utilitizing state of the art technology to locate victims who become lost due to wandering. Police Pension This fund accounts for property taxes levied for the payment of the current liability for police disability and pension benefits. Drug Law Enforcement To fund accounts for a percentage of receipts from court cases to be used for puchase of equipment, training, and travel in the fight against drugs.

81

NONMAJOR GOVERNMENTAL FUNDS (Continued)

SPECIAL REVENUE FUNDS (Continued)

Law Enforcement Trust This fund accounts for monies received from the Federal Law Enforcement agencies designated for law enforcement purposes under Ohio Revised Code. Enforcement and Education This fund accounts for grant monies received from DUI arrests to be used for enforcement and education and for DUI housing reimbursements pursuant to Ohio Revised Code Section 4511.191. FEMA This fund accounts for the federal portion of grant monies received from the Federal Emergency Management Agency through the Ohio Emergency Management Agency. Police Memorial This fund accounts for donations received by the police department. These monies may be used at the discretion of the Police Chief. Recreation Tax Receipts This fund accounts for tax revenues received from developers to be used for parks and recreation. Recreation Activitiy Receipts This fund accounts for the charges for services for recreational activities in the City. With the implementation of GASB Statement No. 54, this fund no longer met the definition to be reported as a Special Revenue Fund and has been included with the General Fund in the governmental fund financial statements. Therefore, the City has only presented the budgetary schedule for this fund based upon its legally-adopted budget.

DEBT SERVICE FUNDS To account for the accumulation of resources for, and the payment of, general long-term debt principal and interst. Debt Service This fund accounts for transfers in from the general fund for the retirement of principal and interest on general obligation debt. Special Assessment This fund accounts for various special assessments received by the City.

82

NONMAJOR GOVERNMENTAL FUNDS (Continued)

CAPITAL PROJECT FUNDS

To account for financial resources to be used for the acquisition or construction of major capital facilities, other than those financed by proprietary funds. Capital Improvements To account for resources used to purchase equipment and construct capital assets. Harrison Avenue TIF To account for infrastructure improvements and development of the Harrison Avenue street complex. Street and Safety Construction This fund accounts for the construction of various street improvements.

83

CITY OF HARRISON, OHIOCombining Balance SheetNonmajor Governmental Funds

Nonmajor Nonmajor Nonmajor TotalSpecial Debt Capital NonmajorRevenue Service Projects Governmental

Funds Funds Funds Funds

Assets:Equity in pooled cash and investments $ 540,576 408,467 184,700 1,133,743 Cash in segregated accounts 12,872 - - 12,872 Receivables:

Property and other taxes 58,957 - 11,444 70,401 Payment in lieu of taxes - - 268,803 268,803 Accounts 13,511 - - 13,511 Intergovernmental 218,449 - - 218,449

Prepaid items 6,397 - - 6,397

Materials and supplies inventory 10,057 - - 10,057

Total assets 860,819 408,467 464,947 1,734,233

Liabilities, Deferred Inflows ofResources and Fund Balances:Liabilities:

Accounts payable 25,157 - 1,767 26,924 Retainage payable - - 8,649 8,649 Accrued salaries 15,566 - - 15,566 Intergovernmental payable 41,049 - - 41,049 Advances from other funds 35,411 - - 35,411

Notes payable - - 275,000 275,000

Total liabilities 117,183 - 285,416 402,599

Deferred Inflows of Resources:Property taxes and payment in lieu of taxes 58,957 - 268,803 327,760

Unavailable revenue 141,879 - - 141,879

Total deferred inflows of resources 200,836 - 268,803 469,639

Fund balances:Nonspendable 16,454 - - 16,454 Restricted 575,312 23,228 10,227 608,767 Assigned 913 385,239 - 386,152

Unassigned (49,879) - (99,499) (149,378)

Total fund balances 542,800 408,467 (89,272) 861,995


resources and fund balances $ 860,819 408,467 464,947 1,734,233

December 31, 2013

84

CITY OF HARRISON, OHIOCombining Statement of Revenues, Expenditures and Changes in Fund BalanceNonmajor Governmental Funds

Nonmajor Nonmajor Nonmajor TotalSpecial Debt Capital NonmajorRevenue Service Projects Governmental

Funds Funds Funds Funds

Revenues:Property and other taxes $ 76,699 - 70,016 146,715 Payments in lieu of taxes - - 251,977 251,977 Intergovernmental 703,731 - 542,850 1,246,581 Charges for services 11,819 - - 11,819 Fines, costs and forfeitures 16,153 - - 16,153 Contributions 31,983 - - 31,983

Other 8,019 - - 8,019

Total revenues 848,404 - 864,843 1,713,247

Expenditures:Current:

Security of persons and property 350,584 - - 350,584 Public health services 225,515 - - 225,515 Leisure time activity 138,907 - - 138,907 Transportation 608,994 608,994 General government - - 116,267 116,267

Capital outlay - - 764,405 764,405 Debt service:

Principal retirement 20,665 428,041 - 448,706

Interest and fiscal charges 1,493 164,519 - 166,012

Total expenditures 1,346,158 592,560 880,672 2,819,390

Excess of revenues over (under) expenditures (497,754) (592,560) (15,829) (1,106,143)

Other financing sources (uses):Transfers in 462,746 592,560 - 1,055,306

Transfers out - - (150,423) (150,423)

Total other financing sources (uses) 462,746 592,560 (150,423) 904,883

Net change in fund balance (35,008) - (166,252) (201,260)

Fund balance at beginning of year 577,808 408,467 76,980 1,063,255

Fund balance at end of year $ 542,800 408,467 (89,272) 861,995


85

CITY OF HARRISON, OHIOCombining Balance SheetNonmajor Special Revenue Funds

Street State FireMaintenance Highway Fire Community Capital Senior Passport

and Repair Improvements Memorial Center Reserve Center Account

Assets:Equity in pooled cash and investments $ 5,232 15,814 7,636 - 4,202 1,192 1,641 Cash in segregated accounts - - - - - 12,872 - Receivables:

Property and other taxes - - - - - - - Accounts 1,500 - - 9,267 - 2,744 - Intergovernmental 197,417 15,570 - - - 1,967 -

Prepaid items 4,167 1,917 313 -

Materials and supplies inventory 10,057 - - - - - -

Total assets 218,373 31,384 7,636 11,184 4,202 19,088 1,641

Liabilities, Deferred Inflows ofResources and Fund Balances:Liabilities:

Accounts payable 2,413 13,852 - 8,540 - 137 215 Accrued salaries 10,287 - - 2,381 - 2,898 - Intergovernmental payable 9,438 - - 2,268 - 2,630 496

Advances from other funds - 20,411 15,000 - - - -

Total liabilities 22,138 34,263 15,000 13,189 - 5,665 711

Deferred Inflows of Resources:

Property taxes and payment in lieu of taxes - - - - - - -

Unavailable revenue 128,004 10,380 - - - - -

Total deferred inflows of resources 128,004 10,380 - - - - -

Fund Balances:Nonspendable 14,224 - - 1,917 - 313 -

Restricted 54,007 - - - 4,202 13,110 930 Assigned - - - - - - -

Unassigned - (13,259) (7,364) (3,922) - - -

Total fund balances 68,231 (13,259) (7,364) (2,005) 4,202 13,423 930


resources and fund balances $ 218,373 31,384 7,636 11,184 4,202 19,088 1,641

December 31, 2013

86

LawCourt Project Police Drug Law Enforcement Enforcement Police Recreation

Computer Lifesaver Pension Enforcement Trust and Education FEMA Memorial Tax Receipts TOTAL

- 1,652 883 11,862 1,087 583 3,766 913 484,113 $ 540,576 - - - - - - - - - 12,872

- - 58,957 - - - - - - 58,957 - - - - - - - - - 13,511 - - 3,495 - - - - - - 218,449 - - - - - - - - - 6,397

- - - - - - - - - 10,057

- 1,652 63,335 11,862 1,087 583 3,766 913 484,113 860,819

- - - - - - - - - 25,157 - - - - - - - - - 15,566 - - 26,217 - - - - - - 41,049

- - - - - - - - - 35,411

- - 26,217 - - - - - - 117,183

- - 58,957 - - - - - - 58,957

- - 3,495 - - - - - - 141,879

- - 62,452 - - - - - - 200,836

- - - - - - - - - 16,454

- 1,652 - 11,862 1,087 583 3,766 - 484,113 575,312 - - - - - - - 913 - 913

- - (25,334) - - - - - - (49,879)

- 1,652 (25,334) 11,862 1,087 583 3,766 913 484,113 542,800

- 1,652 63,335 11,862 1,087 583 3,766 913 484,113 $ 860,819

87

CITY OF HARRISON, OHIOCombining Balance SheetNonmajor Debt Service Funds

Debt SpecialService Assessment TOTAL

Assets:

Equity in pooled cash and investments $ 385,239 23,228 408,467

Total assets 385,239 23,228 408,467

Fund Balances:Restricted - 23,228 23,228

Assigned 385,239 - 385,239

Total fund balances 385,239 23,228 408,467

Total liabilities and fund balances $ 385,239 23,228 408,467

December 31, 2013

88

CITY OF HARRISON, OHIOCombining Balance SheetNonmajor Capital Projects Funds

Capital Harrison Street and SafetyImprovements Avenue TIF Construction TOTAL

Assets:Equity in pooled cash and investments $ 174,473 7,340 2,887 184,700 Receivables:

Property and other taxes 11,444 - - 11,444

Payment in lieu of taxes - 268,803 - 268,803

Total assets 185,917 276,143 2,887 464,947

Liabilities, Deferred Inflows ofResources and Fund Balances:

Liabilities:Accounts payable 1,767 - - 1,767 Retainage payable 8,649 - - 8,649

Notes payable 275,000 - - 275,000

Total liabilities 285,416 - - 285,416

Deferred Inflows of Resources:

Property taxes and payment in lieu of taxes - 268,803 - 268,803

Total deferred inflows of resources - 268,803 - 268,803

Fund Balances:Restricted - 7,340 2,887 10,227

Unassigned (99,499) - - (99,499)

Total fund balances (99,499) 7,340 2,887 (89,272)


resources and fund balances $ 185,917 276,143 2,887 464,947

December 31, 2013

89

CITY OF HARRISON, OHIOCombining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Special Revenue Funds

Street State FireMaintenance Highway Fire Community Capital Senior Passportand Repair Improvements Memorial Center Reserve Center Account

Revenues:Property and other taxes $ - - - - - - - Intergovernmental 464,132 40,967 - 47,910 - 131,674 12,180 Charges for services 4,992 - - - - - 6,827 Fines, costs and forfeitures - - - - - - - Contributions - - 1,517 - - 29,493 -

Other 7,561 - - 458 - - -

Total revenues 476,685 40,967 1,517 48,368 - 161,167 19,007


Security of persons and property - - - - - - - Public health services - - - - - 203,124 22,391 Leisure time activity - - - 138,907 - - - Transportation 560,331 48,663 - - - - -

Debt service

Principal retirement 20,665 - - - - - -

Interest and fiscal charges 1,493 - - - - - -

Total expenditures 582,489 48,663 - 138,907 - 203,124 22,391

Excess of revenues over (under)

expenditures (105,804) (7,696) 1,517 (90,539) - (41,957) (3,384)

Other financing sources

Transfers in 12,340 - - 88,084 - 35,815 -

Total other financing sources 12,340 - - 88,084 - 35,815 -

Net change in fund balance (93,464) (7,696) 1,517 (2,455) - (6,142) (3,384)

Fund balance at beginning of year 161,695 (5,563) (8,881) 450 4,202 19,565 4,314

Fund balance at end of year $ 68,231 (13,259) (7,364) (2,005) 4,202 13,423 930

continued


90

LawCourt Project Police Drug Law Enforcement Enforcement Police Recreation

Computer Lifesaver Pension Enforcement Trust and Education FEMA Memorial Tax Receipts TOTAL

- - 57,499 - - - - - 19,200 $ 76,699 - - 6,868 - - - - - - 703,731 - - - - - - - - - 11,819

1,048 - - 13,308 1,737 60 - - - 16,153 - 973 - - - - - - - 31,983 - - - - - - - - - 8,019

1,048 973 64,367 13,308 1,737 60 - - 19,200 848,404

1,542 943 343,286 4,110 665 38 - - - 350,584 - - - - - - - - - 225,515 - - - - - - - - - 138,907 - - - - - - - - - 608,994

- - - - - - - - - 20,665 - - - - - - - - - 1,493

1,542 943 343,286 4,110 665 38 - - - 1,346,158

(494) 30 (278,919) 9,198 1,072 22 - - 19,200 (497,754)

- - 326,507 - - - - - - 462,746

- - 326,507 - - - - - - 462,746

(494) 30 47,588 9,198 1,072 22 - - 19,200 (35,008)

494 1,622 (72,922) 2,664 15 561 3,766 913 464,913 577,808

- 1,652 (25,334) 11,862 1,087 583 3,766 913 484,113 $ 542,800

91

CITY OF HARRISON, OHIOCombining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Debt Service Funds

Debt SpecialService Assessment TOTAL

Revenues:

Other $ - - -

Total revenues - - -

Expenditures:Debt Service:

Principal retirement $ 428,041 - 428,041

Interest and fiscal charges 164,519 - 164,519

Total expenditures 592,560 - 592,560

Excess of revenues over (under) expenditures (592,560) - (592,560)

Other financing sources

Transfers in 592,560 - 592,560

Total other financing sources 592,560 - 592,560

Net change in fund balances - - -

Fund balance at beginning of year 385,239 23,228 408,467

Fund balance at end of year $ 385,239 23,228 408,467


92

CITY OF HARRISON, OHIOCombining Statement of Revenues, Expenditures and Changes in Fund BalancesNonmajor Capital Projects Funds

StreetCapital Harrison and Safety

Improvements Avenue TIF Construction TOTAL

Revenues:Property and other taxes $ 70,016 - - 70,016 Payments in lieu of taxes - 251,977 - 251,977

Intergovernmental 542,850 - - 542,850

Total revenues 612,866 251,977 - 864,843


General government - 116,267 - 116,267

Capital outlay 764,405 - - 764,405

Total expenditures 764,405 116,267 - 880,672

Excess of revenues over (under) expenditures (151,539) 135,710 - (15,829)

Other financing uses:

Transfers out (18,810) (131,613) - (150,423)

Total other financing uses (18,810) (131,613) - (150,423)

Net change in fund balance (170,349) 4,097 - (166,252)

Fund balance at beginning of year 70,850 3,243 2,887 76,980

Fund balance at end of year $ (99,499) 7,340 2,887 (89,272)


93

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisStreet Maintenance and Repair

VarianceBudgeted Actual From FinalAmounts Amounts Budget

Revenues:Intergovernmental $ 455,000 465,459 10,459 Charges for services 2,000 3,992 1,992 Other 8,000 7,933 (67)

Total revenues 465,000 477,384 12,384

Expenditures:Current: Transportation

Personal services 489,685 482,297 7,388 Operations/maintenance 107,555 99,982 7,573

Total transportation 597,240 582,279 14,961

Total expenditures 597,240 582,279 14,961

Excess of revenues over (under) expenditures (132,240) (104,895) 27,345

Other financing sources:Transfers in 42,338 12,340 (29,998)

Net change in fund balance (89,902) (92,555) (2,653)

Fund balance, beginning of year 87,936 87,936 Prior year encumbrances appropriated 7,265 7,265

Fund balance, end of year $ 5,299 2,646


Final

94

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisState Highway Improvements


Revenues:Intergovernmental $ 31,100 41,069 9,969

Total revenues 31,100 41,069 9,969

Expenditures:Current: Transportation

Operations/maintenance 36,778 36,355 423

Total expenditures 36,778 36,355 423

Net change in fund balance (5,678) 4,714 10,392




Final

95

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisFire Memorial


Revenues:Contributions $ 5,000 1,517 (3,483)

Total revenues 5,000 1,517 (3,483)


Operations/maintenance 162 60 102

Total expenditures 162 60 102

Net change in fund balance 4,838 1,457 (3,381)

Fund balance, beginning of year 5,958 5,958 Prior year encumbrances appropriated 162 162



Final

96

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisCommunity Center


Revenues:Intergovernmental $ 70,867 38,643 (32,224) Other - 458 458

Total revenues 70,867 39,101 (31,766)

Expenditures:Current: Leisure time activity


Total leisure time activity 173,333 129,365 43,968



Other financing sources:

Transfers in 128,567 88,084 (40,483)

Net change in fund balance 26,101 (2,180) (28,281)

Fund balance, beginning of year - - Prior year encumbrances appropriated 1,898 1,898

Fund balance, end of year $ 27,999 (282)


Final

97

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisFire Capital Reserve


Fund balance, beginning of year 4,202 4,202



Final

98

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisSenior Center


Revenues:Intergovernmental $ 141,242 129,707 (11,535)

Contributions 40,000 29,170 (10,830)

Total revenues 181,242 158,877 (22,365)

Expenditures:Current: Public health services





Transfers in 65,800 35,815 (29,985)

Net change in fund balance (2,460) (11,152) (8,692)


Fund balance, end of year $ 8,692 -


Final

99

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisPassport Account


Revenues:Intergovernmental $ 12,050 12,180 130 Charges for services 9,500 6,827 (2,673)

Total revenues 21,550 19,007 (2,543)

Expenditures:Current: Public health services


Total public health services 29,434 22,261 7,173




Transfers in 3,432 - (3,432)

Net change in fund balance (4,452) (3,254) 1,198


Fund balance, end of year $ 443 1,641


Final

100

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisCourt Computer


Revenues:

Fines, costs and forfeitures $ 6,500 1,148 (5,352)

Total revenues 6,500 1,148 (5,352)


Operations/maintenance 5,000 1,542 3,458


Net change in fund balance 1,500 (394) (1,894)

Fund balance, beginning of year 394 394

Fund balance, end of year $ 1,894 -


Final

101

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisProject Lifesaver


Revenues:

Contributions $ 2,000 973 (1,027)

Total revenues 2,000 973 (1,027)


Operations/maintenance 2,000 943 1,057

Total expenditures 2,000 943 1,057

Net change in fund balance - 30 30




Final

102

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisPolice Pension


Revenues:Property and other taxes $ 56,844 57,499 655 Intergovernmental 7,523 6,868 (655)

Total revenues 64,367 64,367 -


Personal services 391,390 390,706 684


Excess of revenues over (under) expenditures (327,023) (326,339) 684


Transfers in 337,631 326,507 (11,124)

Net change in fund balance 10,608 168 (10,440)


Fund balance, end of year $ 11,323 883


Final

103

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisDrug Law Enforcement


Revenues:Fines, costs and forfeitures $ 16,000 13,708 (2,292)

Total revenues 16,000 13,708 (2,292)




Net change in fund balance 10,860 9,262 (1,598)




Final

104

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisLaw Enforcement Trust


Revenues:Fines, costs and forfeitures $ 1,000 1,752 752

Total revenues 1,000 1,752 752


Operations/maintenance 1,175 840 335

Total expenditures 1,175 840 335

Net change in fund balance (175) 912 1,087

Fund balance, beginning of year - - Prior year encumbrances appropriated 175 175

Fund balance, end of year $ - 1,087


Final

105

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisEnforcement and Education


Revenues:Fines, costs and forfeitures $ 300 60 (240)

Total revenues 300 60 (240)


Operations/maintenance 300 38 262

Total expenditures 300 38 262

Net change in fund balance - 22 22


Fund balance, end of year $ 561 583


Final

106

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisFEMA





Final

107

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisPolice Memorial



Fund balance, end of year $ 913 913


Final

108

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisRecreation Tax Receipts


Revenues:

Property and other taxes $ 20,000 19,200 (800)

Total revenues 20,000 19,200 (800)

Net change in fund balance 20,000 19,200 (800)




Final

109

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisRecreation Activity Receipts (1)


Revenues:Contributions $ 3,500 1,500 (2,000)

Other 8,000 5,561 (2,439)

Total revenues 11,500 7,061 (4,439)

Expenditures:Current: Leisure time activities


Total leisure time activities 7,973 7,753 220

Capital outlayCapital improvements 2,027 2,027 -

Total capital outlay 2,027 2,027 -


Net change in fund balance 1,500 (2,719) (4,219)



(1) For GAAP reporting, this fund is combined with the General Fund.


Final

110

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisDebt Service Fund


Expenditures:Debt service: Principal $ 3,697,059 3,697,059 -

Interest and fiscal charges 1,417,930 1,417,909 21

Total expenditures 5,114,989 5,114,968 21


Transfers in 5,114,970 5,114,968 (2)

Net change in fund balance (19) - 19




Final

111

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisSpecial Assessment





Final

112

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisCapital Improvement Fund


Revenues:Property and other taxes $ 75,000 74,691 (309)

Intergovernmental 671,040 542,850 (128,190)

Total revenues 746,040 617,541 (128,499)

Expenditures:Capital outlay

Capital improvements 2,041,155 1,410,701 630,454

Total expenditures 2,041,155 1,410,701 630,454

Excess of revenues over (under) expenditures (1,295,115) (793,160) 501,955

Other financing sources (uses):Bond anticipation notes issued 275,000 275,000 - OPWC loans issued 300,000 - (300,000)

Transfers out (294,440) - 294,440

Total other financing sources (uses) 280,560 275,000 (5,560)

Net change in fund balance (1,014,555) (518,160) 496,395

Fund balance, beginning of year (313,127) (313,127)

Prior year encumbrances appropriated 666,155 666,155

Fund balance, end of year $ (661,527) (165,132)

Final


113

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisHome Depot TIF


Revenues:Payments in lieu of taxes $ 206,000 202,570 (3,430)

Intergovernmental 888,150 468,543 (419,607)

Total revenues 1,094,150 671,113 (423,037)


Operations/maintenance 96,000 93,769 2,231

Total general government 96,000 93,769 2,231

Capital outlay

Capital improvements 1,938,064 1,908,576 29,488

Total capital outlay 1,938,064 1,908,576 29,488

Total expenditures 2,034,064 2,002,345 31,719

Excess of revenues over (under) expenditures (939,914) (1,331,232) (391,318)

Other financing sources (uses):Transfers out (1,349,776) (1,349,776) -

Bond anticipation notes issued 1,250,000 1,254,605 4,605

Total other financing sources (uses) (99,776) (95,171) 4,605

Net change in fund balance (1,039,690) (1,426,403) (386,713)


Prior year encumbrances appropriated 1,084,134 1,084,134

Fund balance, end of year $ 121,335 (265,378)


Final

114

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisHarrison Avenue TIF


Revenues:

Payments in lieu of taxes $ 246,800 251,977 5,177

Total revenues 246,800 251,977 5,177



Total general government 116,300 116,267 33


Excess of revenues over expenditures 130,500 135,710 5,210

Other financing uses:

Transfers out (131,613) (131,613) -

Total other financing uses (131,613) (131,613) -

Net change in fund balance (1,113) 4,097 5,210




Final

115

CITY OF HARRISON, OHIOSchedule of Revenues, Expenditures and Changes in FundBalance - Budget and Actual - Budget (Non-GAAP) BasisStreet and Safety Construction





Final

116

NONMAJOR PROPRIETARY FUNDS

ENTERPRISE FUNDS To account for goods and services financed or recovered primarily through external user charges and fees. Storm Water This fund accounts for the storm water services provided to the residential and commercial user of the City. Water/Wastewater Deposits This fund accounts for deposits from utility services which the City applies and/or refunds upon termination of service. Sanitation This fund accounts for the sanitation services provided to the residential and commercial users of the City.

117

CITY OF HARRISON, OHIOCombining Statement of Fund Net PositionNonmajor Enterprise Funds

Water/WastewaterStorm Water Deposits Sanitation TOTAL

Assets:Current assets:

Equity in pooled cash and investments $ 14,320 84,243 168,008 266,571 Receivables:

Accounts 9,898 - 41,138 51,036

Total current assets 24,218 84,243 209,146 317,607

Noncurrent assets:

Capital assets:

Depreciable capital assets, net 1,968,025 - - 1,968,025

Total assets 1,992,243 84,243 209,146 2,285,632

Liabilities and Net Position:

Liabilities:Current liabilities:

Accounts payable 100 - 3,007 3,107 Advances from other funds 132,178 - - 132,178

OPWC loan payable, current portion of 21,030 - - 21,030

Total current liabilities 153,308 - 3,007 156,315

Long-term liabilities:

OPWC loan payable, net of current portion 304,935 - - 304,935

Total long-term liabilities 304,935 - - 304,935

Total liabilities 458,243 - 3,007 461,250

Net position:Net investment in capital assets 1,642,060 - - 1,642,060

Unrestricted (deficit) (108,060) 84,243 206,139 182,322

Total net position $ 1,534,000 84,243 206,139 1,824,382

December 31, 2013

118

CITY OF HARRISON, OHIOCombining Statement of Revenues, Expenses and Changes in Net PositionNonmajor Enterprise Funds

Water/WastewaterStorm Water Deposits Sanitation Total

Operating revenues:

Charges for services $ 112,006 9,745 462,736 584,487

Total operating revenues 112,006 9,745 462,736 584,487

Operating expenses:Contractual services 200 - 499,475 499,675 Other - 1,166 - 1,166

Depreciation 46,613 - - 46,613

Total operating expenses 46,813 1,166 499,475 547,454

Operating income (loss) 65,193 8,579 (36,739) 37,033

Transfers out (28,469) - - (28,469)

Change in net position 36,724 8,579 (36,739) 8,564

Net position, beginning of year 1,497,276 75,664 242,878 1,815,818

Net position, end of year $ 1,534,000 84,243 206,139 1,824,382


119

CITY OF HARRISON, OHIOCombining Statement of Cash FlowsNonmajor Enterprise Funds

Water/WastewaterStorm Water Deposits Sanitation Total

Cash flows from operating activities:Cash received from customers $ 112,366 9,745 462,878 584,989 Cash payments to suppliers for goods and services (100) - (496,668) (496,768)

Cash payments for other operating expenses - (1,166) - (1,166)

Net cash provided (used) by operating activities 112,266 8,579 (33,790) 87,055

Cash flows from noncapital financing activities:Transfers (28,469) - - (28,469)

Return advances to other funds (75,000) - - (75,000)

Net cash used by noncapital financing activities (103,469) - - (103,469)

Cash flows from capital and related financing activities:

Principal retirement (21,030) - - (21,030)

Net cash used by capital and related financing activities (21,030) - - (21,030)

Net change (12,233) 8,579 (33,790) (37,444)

Cash and pooled investments beginning of year 26,553 75,664 201,798 304,015

Cash and pooled investments end of year 14,320 84,243 168,008 266,571

Reconciliation of operating income (loss) to net cashprovided (used) by operating activities:

Operating income (loss) 65,193 8,579 (36,739) 37,033 Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation 46,613 - - 46,613 Changes in assets and liabilities: Receivables 360 - 142 502

Accounts payable 100 - 2,807 2,907

Net cash provided (used) by operating activities $ 112,266 8,579 (33,790) 87,055


120

COMBINING STATEMENTS – FIDUCIARY FUNDS

AGENCY FUNDS Agency funds are purely custodial (assets equals liabilities) and thus do not involve measurement of results of operations. Mayor’s Court This fund accounts for assets received and disbursed by the Mayor’s Court as agent or custodian related to various court matters. Joint Economic Development District To account for all tax monies and disbursements of funds held by the City on behalf of the City of Harrison-Harrsion Township Joint Economic Development District.

121

CITY OF HARRISON, OHIOCombining Statement of Changes in Assets and LiabilitiesAgency Funds

Beginning EndingBalance Additions Deductions Balance

Mayor's CourtAssets:

Cash in segregated accounts $ 12,004 181,046 178,653 14,397

Liabilities:Intergovernmental payable 12,004 181,046 178,653 14,397

Joint Economic Development DistrictAssets:

Equity in pooled cash and investments - 105,474 78,807 26,667 Income taxes receivable - 49,974 - 49,974

Total assets - 155,448 78,807 76,641

Liabilities:Intergovernmental payable - 155,448 78,807 76,641

TOTALAssets:

Cash in segregated accounts 12,004 181,046 178,653 14,397 Equity in pooled cash and investments - 105,474 78,807 26,667 Income taxes receivable - 49,974 - 49,974

Total assets 12,004 336,494 257,460 91,038

Liabilities:Intergovernmental payable 12,004 336,494 257,460 91,038

Total liabilities $ 12,004 336,494 257,460 91,038


122

STATISTICAL

SECTION

123


124

STATISTICAL SECTION

This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. Contents: Financial Trends

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity

These schedules contain information to help the reader assess the factors affecting the City’s most significant local revenue source, income and property taxes.

Debt Capacity

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt as well as the City’s ability to issue additional debt in the future.

Demographic and Economic Information

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information

These schedules contain information about the City’s operation and resources to help the reader understand how the City’s financial information relates to the services proved and activities performed.

Sources: Unless otherwise noted, the information in these schedules is derived from the City’s annual financial reports for the relevant year.

125

2013 (1) 2012 2011 2010 2009 2008 2007 2006 2005 2004

Governmental ActivitiesNet investment in capital assets 11,201,136$ 10,827,649$ 9,273,676$ 8,613,002$ 8,700,582$ 8,188,666$ 7,218,367$ 6,208,120$ 6,305,598$ 4,996,494$ Restricted:

Capital Projects 1,243,568 70,399 320,110 463,089 246,153 802,220 833,089 1,147,150 430,814 3,107,785 Debt Service - - - 349,409 381,877 607,608 879,953 1,097,636 1,087,694 1,164,296 Streets and Highways 193,356 302,855 434,498 618,134 807,072 779,370 547,732 438,369 354,940 231,962 Recreation 496,461 490,505 529,826 441,070 293,901 194,023 104,032 89,697 236,584 65,182 Other Purposes 288,152 172,248 172,805 253,799 579,115 769,187 973,782 837,138 1,022,544 890,100

Unrestricted (646,855) 434,520 528,906 898,341 899,413 2,243,692 2,131,089 1,398,851 1,345,503 994,418

Total Governmental Activities Net Positon 12,775,818 12,298,176 11,259,821 11,636,844 11,908,113 13,584,766 12,688,044 11,216,961 10,783,677 11,450,237

Business Type - ActivitiesNet investment in capital assets 8,321,936 8,636,600 8,547,117 6,955,754 8,017,742 8,208,988 8,203,170 8,244,568 6,593,538 5,162,716 Restricted 1,885,810 2,131,205 2,183,434 2,183,465 2,148,863 2,112,293 2,103,523 1,997,344 1,604,388 1,929,871 Unrestricted 1,276,607 1,637,109 2,028,991 3,748,975 2,638,922 3,358,016 3,844,896 3,676,592 5,390,514 4,841,314

Total Business-Type Activities Net Position 11,484,353 12,404,914 12,759,542 12,888,194 12,805,527 13,679,297 14,151,589 13,918,504 13,588,440 11,933,901

Primary GovernmentNet investment in capital assets 19,523,072 19,464,249 17,820,793 15,568,756 16,718,324 16,397,654 15,421,537 14,452,688 12,899,136 10,159,210 Restricted 4,107,347 3,167,212 3,640,673 4,308,966 4,456,981 5,264,701 5,442,111 5,607,334 4,736,964 7,389,196 Unrestricted 629,752 2,071,629 2,557,897 4,647,316 3,538,335 5,601,708 5,975,985 5,075,443 6,736,017 5,835,732

Total Primary Government Net Positon 24,260,171$ 24,703,090$ 24,019,363$ 24,525,038$ 24,713,640$ 27,264,063$ 26,839,633$ 25,135,465$ 24,372,117$ 23,384,138$

(1) 2013 was the first year the City implemented GASB 65; the City elected to apply the standard prospectively.

Source: City financial records


NET POSITION BY COMPONENTLAST TEN YEARS

(ACCRUAL BASIS OF ACCOUNTING)

126

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004Program RevenuesGovernmental Activities:

Charges for Services:Security of Persons and Property: 868,095$ 870,269$ 745,046$ 893,571$ 698,301$ 595,500$ 594,535$ 554,805$ 563,405$ 594,816$ Public Health Services 36,320 46,240 49,732 25,858 35,097 157,651 161,182 99,866 129,583 19,644 Leisure Time Activities 53,471 58,076 73,529 71,358 72,138 68,899 112,069 - 63,520 39,640 Community and Economic Development 133,226 104,960 117,564 47,195 152,332 86,114 161,103 178,519 192,412 93,660 Transportation - - - - 375 120 480 - 120 390 General Government 290,841 369,377 369,018 369,018 97,079 91,539 88,502 83,194 84,939 71,765

Operating Grants and Contributions 692,625 706,475 680,347 877,907 896,275 756,604 462,771 483,100 547,153 611,410 Capital Grants and Contributions 339,905 1,313,600 489,106 - 265,063 528,547 436,179 243,409 273,327 841,885 Total Governmental Activities Program Revenues 2,414,483 3,468,997 2,524,342 2,284,907 2,216,660 2,284,974 2,016,821 1,642,893 1,854,459 2,273,210

Business-Type Activities:Charges for Services:

Water 1,509,511 1,415,656 1,350,769 1,288,614 1,224,384 1,317,775 1,431,917 1,406,498 1,431,799 1,314,098 Sewer 3,165,519 3,207,159 3,045,977 2,833,348 2,433,320 2,251,507 2,179,071 2,146,156 2,103,560 1,787,499 Storm Water 112,006 111,424 118,253 105,247 179,977 94,862 27,146 - - - Water/Wastewater Deposits 9,745 7,126 5,622 5,578 8,916 4,660 8,055 10,221 5,805 2,531 Sanitation 462,736 453,360 444,775 424,907 377,239 365,055 375,069 387,944 334,833 295,695

Operating Grants and Contributions - - - - 8,047 58,837 8,377 3,566 - - Capital Grants and Contributions - - - - - 185,022 - - - 748,957 Total Business-Type Activities Program Revenues 5,259,517 5,194,725 4,965,396 4,657,694 4,231,883 4,277,718 4,029,635 3,954,385 3,875,997 4,148,780

Total Primary Government 7,674,000$ 8,663,722$ 7,489,738$ 6,942,601$ 6,448,543$ 6,562,692$ 6,046,456$ 5,597,278$ 5,730,456$ 6,421,990$

Expenses:Governmental Activities:

Security of Persons and Property 6,085,651$ 6,261,278$ 6,436,476$ 5,841,459$ 6,743,223$ 4,965,899$ 4,683,372$ 4,536,986$ 4,572,970$ 4,128,525$ Public Health Services 250,573 316,702 314,128 339,855 400,154 313,537 281,603 264,800 302,458 242,285 Leisure Time Activities 216,324 266,164 303,402 315,334 369,208 332,381 308,959 304,242 225,342 244,658 Community and Economic Development 33,721 104,288 127,997 138,115 150,035 110,453 125,886 108,382 103,838 95,444 Transportation 807,923 919,283 914,534 971,886 889,189 738,160 685,405 629,650 564,912 640,357 General Government 793,184 1,138,495 1,291,876 1,299,480 1,526,678 1,011,755 839,493 1,138,392 884,336 1,030,510

Interest and Fiscal Charges 248,331 242,803 244,701 295,479 230,125 214,254 108,342 195,440 187,483 175,737 Total Governmental Activities Expenses 8,435,707 9,249,013 9,633,114 9,201,608 10,308,612 7,686,439 7,033,060 7,177,892 6,841,339 6,557,516

Business-Type Activities:Water 1,951,365 1,601,191 1,564,893 1,387,114 1,826,364 1,117,172 941,915 1,069,343 1,124,409 974,473 Sewer 3,193,149 3,462,848 3,076,759 2,653,586 2,931,737 2,776,374 2,551,359 2,511,568 2,561,278 2,077,687 Storm Water 46,813 46,613 114,987 129,183 50,123 617,408 38,301 39,663 24,211 404 Water/Wastewater Deposits 1,166 2,500 2,240 3,098 1,824 848 959 774 529 92 Sanitation 499,475 414,627 446,402 423,451 434,487 355,800 384,917 376,338 317,682 268,014

Total Business-Type Activities Expenses 5,691,968 5,527,779 5,205,281 4,596,432 5,244,535 4,867,602 3,917,451 3,997,686 4,028,109 3,320,670


Net (Expense) Revenue:Governmental Activities (6,021,224)$ (5,780,016)$ (7,108,772)$ (6,916,701)$ (8,091,952)$ (5,401,465)$ (5,016,239)$ (5,534,999)$ (4,986,880)$ (4,284,306)$ Business-Type Activities (432,451) (333,054) (239,885) 61,262 (1,012,652) (589,884) 112,184 (43,301) (152,112) 828,110 Total Primary Government Net Expense (6,453,675)$ (6,113,070)$ (7,348,657)$ (6,855,439)$ (9,104,604)$ (5,991,349)$ (4,904,055)$ (5,578,300)$ (5,138,992)$ (3,456,196)$

continued


CHANGES IN NET POSITIONLAST TEN YEARS


127

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

General Revenues and Other Changes in Net Position

Governmental ActivitiesTaxes:

Property Taxes Levied For:General Purposes 1,074,061$ 1,133,971$ 1,177,650$ 1,114,994$ 1,257,994$ 1,175,925$ 1,182,350$ 1,154,940$ 1,105,350$ 966,908$ Fire Improvements 1,130,567 1,141,133 1,174,922 1,151,918 739,772 857,520 915,426 902,383 896,472 844,740 Police Pension 57,150 57,978 62,067 58,466 54,489 60,085 58,283 65,937 61,785 51,934 Recreation 19,200 19,600 6,541 18,318 14,800 8,500 32,400 34,300 42,489 44,900 Capital Projects 70,016 92,683 60,951 62,672 255,008 244,635 233,431 210,660 199,490 194,815

Municipal Income Taxes levied for:General Purposes 3,138,686 3,212,378 2,956,342 2,927,295 2,860,771 3,034,376 2,951,057 2,794,284 2,586,428 2,635,151

Payment in Lieu of Taxes 462,470 453,214 436,412 259,559 - - - - - - Grants and Entitlements not Restricted to

Specific Programs 498,626 479,451 719,408 903,534 1,013,554 575,158 655,461 478,657 680,472 518,308 Investment Earnings 21,841 28,313 34,474 56,698 67,215 201,017 321,019 217,467 161,035 47,149 Miscellaneous 76,036 171,181 74,513 99,419 151,696 60,817 107,742 100,066 250,567 104,679 Transfers 28,469 28,469 28,469 - - 80,154 30,153 9,589 (1,663,768) 2,459,261

Total Governmental Activities 6,577,122 6,818,371 6,731,749 6,652,873 6,415,299 6,298,187 6,487,322 5,968,283 4,320,320 7,867,845

Business-Type Activities:Investment Earnings 820 948 1,882 2,233 13,472 187,861 140,535 136,586 90,501 54,368 Miscellaneous 2,209 5,947 137,820 19,172 125,410 9,885 10,519 246,368 52,382 28,717 Transfers (28,469) (28,469) (28,469) - - (80,154) (30,153) (9,589) 1,663,768 (2,459,261)

Total Business-Type Activities (25,440) (21,574) 111,233 21,405 138,882 117,592 120,901 373,365 1,806,651 (2,376,176)


Changes in Net Position:Governmental Activities 555,898$ 1,038,355$ (377,023)$ (263,828)$ (1,676,653)$ 896,722$ 1,471,083$ 433,284$ (666,560)$ 3,583,539$ Business-Type Activities (457,891) (354,628) (128,652) 82,667 (873,770) (472,292) 233,085 330,064 1,654,539 (1,548,066) Total Primary Government 98,007$ 683,727$ (505,675)$ (181,161)$ (2,550,423)$ 424,430$ 1,704,168$ 763,348$ 987,979$ 2,035,473$



CHANGES IN NET POSITION (CONTINUED)

LAST TEN YEARS


128

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

General Fund:

Reserved -$ -$ -$ 107,219$ 138,909$ 94,110$ 89,890$ 74,089$ 249,579$ 226,613$ Unreserved - - - 973,409 1,372,342 1,937,901 1,787,588 1,171,804 738,136 462,452 Nonspendable 159,782 44,307 61,155 - - - - - - - Assigned 393,296 562,112 256,401 - - - - - - - Unassigned - 73,663 560,025 - - - - - - -

Total General Fund 553,078$ 680,082$ 877,581$ 1,080,628$ 1,511,251$ 2,032,011$ 1,877,478$ 1,245,893$ 987,715$ 689,065$

All Other Governmental Funds:

Reserved -$ -$ -$ 276,219$ 350,647$ 77,949$ 66,766$ 23,728$ 1,623,732$ 755,549$ Unreserved (deficit), reported in: Special Revenue Funds - - - 787,787 1,047,477 1,458,594 1,402,143 1,280,852 1,337,329 934,137 Debt Service Funds - - - 410,733 394,074 620,316 923,848 1,108,321 1,098,117 1,176,283 Capital Projects Funds - - - 723,045 666,249 787,220 818,482 1,147,150 (1,020,609) 2,499,405 Nonspendable 25,621 27,702 38,999 - - - - - - - Restricted 608,767 675,513 1,039,070 - - - - - - - Committed - 70,850 - - - - - - - - Assigned 386,152 386,152 386,152 - - - - - - - Unassigned (1,325,608) (1,558,573) (544,843) - - - - - - -

Total All Other Governmental Funds (305,068)$ (398,356)$ 919,378$ 2,197,784$ 2,458,447$ 2,944,079$ 3,211,239$ 3,560,051$ 3,038,569$ 5,365,374$


Note: 2011 was the first year the City implemented GASB 54; the City elected to apply the standard prospectively.


FUND BALANCES, GOVERNMENTAL FUNDSLAST TEN YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

129

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Revenues

Taxes 5,516,444$ 5,566,501$ 5,349,136$ 5,310,372$ 5,183,896$ 5,375,433$ 5,299,259$ 5,194,401$ 4,895,233$ 4,656,975$

Payment in Lieu of Taxes 454,547 452,863 441,506 240,736 - - - - - - Intergovernmental 2,658,581 1,589,536 1,891,845 1,736,023 2,192,876 1,766,443 1,431,545 1,201,142 1,533,268 1,947,015

Charges for Services 864,869 881,137 747,078 968,302 692,342 697,907 750,671 499,626 562,232 439,505 Fines, Costs and Forfeitures 131,101 197,051 196,021 229,666 117,904 126,519 108,891 162,032 202,606 219,915 Licenses, Permits and Inspections 308,476 213,233 223,341 177,223 245,031 172,878 245,275 254,726 269,141 160,495

Interest 21,841 28,313 34,474 58,205 66,941 217,625 321,019 217,467 166,572 56,434 Contributions 33,608 47,270 50,749 6,783 17,680 40 - - - - Other 32,820 337,962 152,887 127,934 211,186 89,008 151,685 77,014 250,567 100,111

Total Revenues 10,022,287 9,313,866 9,087,037 8,855,244 8,727,856 8,445,853 8,308,345 7,606,408 7,879,619 7,580,450

ExpendituresCurrent:

Security of persons and property 5,872,990 6,024,562 5,917,133 5,652,619 5,601,881 4,725,957 4,507,623 4,271,258 4,203,191 3,938,018 Public health services 238,774 306,401 292,932 338,848 371,429 307,502 279,541 258,999 288,470 229,006 Leisure time activities 189,075 200,297 220,659 251,512 294,920 275,595 251,698 238,886 170,999 192,253 Community and economic development 33,680 100,612 124,383 134,578 143,679 109,590 124,646 104,374 100,599 94,084 Transportation 608,994 632,330 677,233 780,692 667,450 579,366 555,511 506,502 470,473 478,557 General government 717,760 1,125,019 1,311,725 1,209,228 1,435,916 1,002,167 836,722 1,011,017 867,722 1,028,792

Capital outlay 1,434,327 2,448,443 1,971,979 785,017 3,143,530 1,105,557 2,379,123 623,455 3,999,031 2,286,541 Debt Service:

Principal Retirement 733,287 627,520 573,628 518,871 431,811 395,220 327,701 324,850 289,668 287,601 Interest and Fiscal Charges 255,585 247,899 252,270 265,646 195,695 185,481 37,416 160,022 188,312 176,118 Issuance Costs - - - - 87,316 2,493 - 71,824 -

Total Expenditures 10,084,472 11,713,083 11,341,942 9,937,011 12,373,627 8,688,928 9,299,981 7,499,363 10,650,289 8,710,970

Excess of Revenues Over (Under) Expenditures (62,185) (2,399,217) (2,254,905) (1,081,767) (3,645,771) (243,075) (991,636) 107,045 (2,770,670) (1,130,520)

Other Financing Sources (Uses)Bond Issuance - - - - 1,810,000 - - - 2,135,000 - Premium on Bond Issue - - - - 87,316 - - - 123,247 - Premium on Note Issue - - - - - 3,281 - - - - Payment to Refunding Bond Escrow Agent - - - - - - - - (2,189,078) - Accrued Interest on Bond Issue - - - - - - - - 2,655 - Inception of Capital Lease - 503,048 226,798 325,430 237,739 47,013 1,244,256 68,856 - 346,484 Loan Issuance - 352,467 518,185 65,051 504,324 - - 564,170 476,673 - Transfers In 2,476,008 2,334,505 1,719,732 2,115,734 2,007,615 1,754,524 1,615,721 1,654,093 1,842,926 4,836,898 Transfers Out (2,447,539) (2,306,036) (1,691,263) (2,115,734) (2,007,615) (1,674,370) (1,585,568) (1,614,504) (1,648,908) (1,617,413)

Total Other Financing Sources (Uses) 28,469 883,984 773,452 390,481 2,639,379 130,448 1,274,409 672,615 742,515 3,565,969

Net Change in Fund Balances (33,716)$ (1,515,233)$ (1,481,453)$ (691,286)$ (1,006,392)$ (112,627)$ 282,773$ 779,660$ (2,028,155)$ 2,435,449$

Debt Service as a Percentage of Noncapital Expenditures 11.45% 9.39% 8.57% 8.47% 7.51% 8.01% 5.38% 7.05% 8.27% 7.22%



CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS

LAST TEN YEARS

(MODIFIED ACCRUAL BASIS OF ACCOUNTING)

130

Estimated Estimated Estimated Estimated Tax Assessed Actual Assessed Actual Assessed Actual Assessed Actual Year Value Value (1) Value Value (1) Value Value (1) Value Value Ratio

2013 214,369,500$ 612,484,286$ 5,952,950$ 5,952,950$ -$ -$ 220,322,450$ 618,437,236$ 35.63%

2012 211,208,850 603,453,857 5,433,520 5,433,520 - - 216,642,370 608,887,377 35.58%

2011 212,591,880 607,405,371 5,275,410 5,275,410 - - 217,867,290 612,680,781 35.56%

2010 228,938,580 654,110,229 4,854,870 4,854,870 132,640 707,413 233,926,090 659,672,512 35.46%

2009 223,533,270 638,666,486 4,314,400 4,314,400 250,870 1,337,973 228,098,540 644,318,859 35.40%

2008 220,529,210 630,083,457 3,986,460 3,986,460 5,421,080 28,912,427 229,936,750 674,941,724 34.07%

2007 211,870,220 605,343,486 3,858,280 3,858,280 11,914,930 63,546,293 227,643,430 684,322,899 33.27%

2006 202,509,130 578,597,514 4,117,220 4,117,220 16,313,010 46,608,600 222,939,360 629,323,334 35.43%

2005 191,361,800 546,748,000 4,295,430 4,295,430 19,689,900 78,759,600 215,347,130 629,803,030 34.19%

2004 160,124,090 457,497,400 4,591,770 4,591,770 20,541,290 82,165,160 185,257,150 544,254,330 34.04%

Source: Hamilton County Auditor's OfficeNote: Tax collections are one year in arrears (i.e. Tax Year 2013, Collection Year 2014)

(1) This amount is calculated based on the following percentages: Real property is assessed at thirty-five percent of actual value. Public utility is assessed at one hundred percent of actual value. Tangible personal is assessed at twenty-five percent of true value for capital assets and twenty-three percent of true value for inventory included in tangible personal property.

(a) House Bill 66 elminated all current Tangible Personal Property in 2009, except for telecommunication companies, whose last required filing was in 2010.


ASSESSED VALUATION AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLAST TEN YEARS

Real Property Public Utility Property Tangible Personal Property (a) Total

131

TotalJoint Joint Hamilton Direct and

Collection Police Township School County Ambulatory Vocational County Park Library OverlappingYear General Pension Fire Levy Levy Levy Levy Levy District Levy Levy Rates

2013 5.70 0.30 8.50 0.06 44.18 19.03 - 2.70 1.03 1.00 82.50

2012 5.70 0.30 8.50 0.06 44.18 19.03 - 2.70 1.03 1.00 82.50

2011 5.70 0.30 8.50 0.06 44.68 19.45 - 2.70 1.03 1.00 83.42

2010 5.70 0.30 8.50 0.06 44.98 20.48 - 2.70 1.03 1.00 84.75

2009 5.70 0.30 7.00 0.06 45.14 20.63 1.25 2.70 1.03 1.00 84.81

2008 5.70 0.30 7.00 0.06 45.30 20.56 1.25 2.70 1.03 1.00 84.90

2007 5.70 0.30 7.00 0.06 45.30 20.18 1.25 2.70 1.03 1.00 84.52

2006 5.70 0.30 7.00 0.06 46.68 19.78 1.25 2.70 1.03 1.03 85.53

2005 5.70 0.30 7.00 0.06 47.08 20.03 1.25 2.70 1.03 1.03 86.18

2004 5.70 0.30 7.00 0.06 47.25 20.48 1.25 2.70 1.03 1.03 86.80

Source: Hamilton County Auditor's Office


DIRECT AND OVERLAPPING PROPERTY TAX RATES(RATE PER $1,000 OF ASSESSED VALUE)

LAST TEN YEARS

City Levy

132

TaxableAssessed Percentage of

Taxpayer Value Rank Assessed Value

Duke Energy Ohio Inc 5,845,830$ 1 2.65%Hurbert North American 3,066,690 2 1.39%Indian Footprint 2,523,780 3 1.15%Maas Enterprises Ltd 2,079,940 4 0.94%Harrison Center LLC 1,972,080 5 0.90%Broad Properties LLC 1,681,420 6 0.76%Mercy Health Plaza 1,608,140 7 0.73%Toebben LTD 1,575,010 8 0.71%McKenna & Friedmann 1,257,280 9 0.57%Broad Capital Group Ltd 1,236,070 10 0.56%

Total, Top Ten Principal Real Estate and Tangible Personal Property Taxpayers 22,846,240$ 10.36%

Total City Real Estate and Tangible Personal Property Valuation 220,322,450$

TaxableAssessed Percentage of

Taxpayer Value Rank Assessed Value

Cincinnati Gas & Electric Company 2,557,810$ 1 1.38%F & M MAFCO Inc. 2,291,750 2 1.24%JTM Provisions Co. Inc. 1,605,900 3 0.87%Campbell Hausfeld Scott 1,542,940 4 0.83%Supervalue Holdings Inc. 1,201,580 5 0.65%Home Depot USA, Inc. 1,134,470 6 0.61%Cronin Ford Inc. 1,128,410 7 0.61%Wayne Scott Fetzer Co. 1,063,140 8 0.57%Harrison Division of MII 1,045,820 9 0.56%Hubert Company LLC 989,620 10 0.53%

Total, Top Ten Principal Real Estate and Tangible Personal Property Taxpayers 14,561,440$ 7.85%

Total City Real Estate and Tangible Personal Property Valuation 185,257,150$


December 31, 2004


DECEMBER 31, 2013 AND DECEMBER 31, 2004

December 31, 2013

REAL ESTATE AND TANGIBLE PERSONAL PROPERTY TAXPRINCIPAL TAXPAYERS

133

Percent Percentof Current of Total

Total Current Collections Delinquent Total CollectionsYear Levy Collections to Tax Levy Collections Collections to Tax Levy

2013 3,165,713$ 2,981,765$ 94.19% 71,749$ 3,053,514$ 96.46%

2012 2,874,394 2,621,375 91.20% 91,399 2,712,774 94.38%

2011 2,826,368 2,614,364 92.50% 75,266 2,689,630 95.16%

2010 2,782,684 2,565,609 92.20% 92,270 2,657,879 95.51%

2009 2,390,528 2,283,163 95.51% 104,583 2,387,746 99.88%

2008 2,289,118 2,183,719 95.40% 95,053 2,278,772 99.55%

2007 2,158,045 1,689,521 78.29% 44,064 1,733,585 80.33%

2006 1,977,533 1,904,381 96.30% 54,448 1,958,829 99.05%

2005 1,997,347 1,906,140 95.43% 58,022 1,964,162 98.34%

2004 1,871,491 1,819,037 97.20% 87,009 1,906,046 101.85%

Note: County Auditor does not identify delinquent tax collections by levy year.


REAL AND PUBLIC UTILILTY PROPERTY TAX LEVIES AND COLLECTIONSLAST TEN YEARS


134

Percentage Percentage Percentageof Taxes of Taxes Taxes of Taxes

Tax Total Tax Taxes from from Taxes From from from from Year Rate Collected Withholding Withholding Net Profits Net Profits Individuals Individuals

2013 1.00% 3,292,815$ 2,321,760$ 70.51% 417,624$ 12.68% 553,431$ 16.81%

2012 1.00% 3,182,141 2,224,239 69.90% 428,202 13.46% 529,700 16.65%

2011 1.00% 3,074,018 2,187,382 71.16% 424,190 13.80% 462,446 15.04%

2010 1.00% 2,948,728 2,096,429 71.10% 391,585 13.28% 460,714 15.62%

2009 1.00% 2,918,823 2,065,074 70.75% 333,367 11.42% 520,382 17.83%

2008 1.00% 3,057,959 2,121,702 69.38% 444,277 14.53% 491,980 16.09%

2007 1.00% 2,899,733 2,039,149 70.32% 386,780 13.34% 473,804 16.34%

2006 1.00% 2,749,563 1,903,448 69.23% 330,223 12.01% 515,892 18.76%

2005 1.00% 2,629,445 1,843,656 70.12% 296,082 11.26% 489,707 18.62%

2004 1.00% 2,528,475 1,795,862 71.03% 299,820 11.86% 432,793 17.12%

Source: City of Harrison Income Tax Department


INCOME TAX REVENUE BASE AND COLLECTIONSLAST TEN YEARS

135

General Bond GeneralObligation OPWC ODOT Anticipation Capital Obligation Revenue

Year Bonds Loans Loan Notes Leases Bonds Bonds

2013 3,270,236$ 1,574,976$ 190,770$ 1,830,000$ 1,193,771$ 5,497,976$ 15,596,891$

2012 3,533,256 1,670,599 263,188 1,835,000 1,499,017 5,674,248 16,392,191

2011 3,781,276 1,387,370 333,481 320,000 1,238,958 5,845,520 16,051,562

2010 3,989,296 921,275 401,713 400,000 1,260,466 6,016,792 16,627,691

2009 4,157,497 894,080 467,943 445,000 1,169,821 390,000 17,183,820

2008 2,414,015 413,378 532,230 450,000 1,105,984 410,000 17,674,948

2007 2,557,848 436,999 564,170 - 1,238,630 435,000 18,106,077

2006 2,681,682 448,810 564,170 - 170,264 460,000 18,332,205

2005 2,800,516 476,673 - - 263,395 510,000 18,558,333

2004 2,860,000 - - - 423,063 35,000 18,928,313

continued

Governmental Activities Business-Type Activities


RATIOS OF OUTSTANDING DEBT BY TYPELAST TEN YEARS

136

(a) (c)Bond Total Per Capita Percentage

Anticipation Capital OPWC OWDA Primary Personal of Personal (b) PerYear Notes Leases Loans Loans Government Income Income Population Capita

2013 -$ 43,891$ 1,618,283$ 4,917,615$ 35,734,409$ N/A N/A 10,292 3,472$

2012 - 70,676 1,731,621 5,288,295 37,958,091 43,454 9% 10,103 3,757

2011 - - 1,844,959 5,631,096 36,432,211 41,738 9% 9,979 3,651

2010 - 15,183 1,958,297 5,956,905 37,547,618 39,306 10% 9,897 3,794

2009 5,000,000 29,509 2,071,635 5,996,693 37,805,998 38,771 10% 9,980 3,788

2008 5,000,000 43,027 2,199,085 3,078,609 33,321,276 40,152 8% 9,980 3,339

2007 5,000,000 55,782 1,937,994 3,181,172 33,513,672 39,356 9% 9,980 3,400

2006 - - 1,764,056 1,919,103 26,340,290 38,458 7% 9,950 2,647

2005 - - 200,694 1,602,468 24,412,079 36,620 7% 9,950 2,453

2004 - - 270,929 1,698,171 24,320,476 35,422 7% 9,885 2,460

"N/A" indicates that the information was not available

Sources:(a) See notes to the financial statements regarding the City's outstanding debt information(b) United States Bureau of Census(c) See Schedule "Demographic and Economic Statistics - Last Ten Years" for personal income.



RATIOS OF OUTSTANDING DEBT BY TYPE (CONTINUED)LAST TEN YEARS

137

Ratio ofEstimated General Bonded General

Actual Value General Debt to Estimated Bondedof Taxable Bonded Actual Value of Debt Per

Year Population (1) Property (2) Debt (3) Taxable Property Capital

2013 10,292 618,437,236$ 8,768,212$ 1.42% 852$

2012 10,103 608,887,377 9,207,504 1.51% 911

2011 9,979 612,680,781 9,626,796 1.57% 965

2010 9,987 659,672,512 10,006,088 1.52% 1,002

2009 9,980 657,262,059 4,547,497 0.69% 456

2008 9,980 674,941,724 2,824,015 0.42% 283

2007 9,980 684,322,899 2,992,848 0.44% 300

2006 9,950 682,285,114 3,141,682 0.46% 316

2005 9,950 629,803,030 3,310,516 0.53% 333

2004 9,885 544,254,330 2,895,000 0.53% 293

Sources:

(1) U. S. Bureau of Census, Census of Population.(2) Hamilton County Auditor(3) These amounts only include tax supported general obligation bonds.

LAST TEN YEARS


RATIO OF GENERAL BONDED DEBT TO ASSESSEDVALUE AND BONDED DEBT PER CAPITA

138

Governmental AmountActivities Debt Applicable

Outstanding to City

Direct - City of HarrisonGeneral Obligation Bonds 3,270,236$ 100.00% 3,270,236$ OPWC Loans 1,574,976 100.00% 1,574,976 ODOT Loan 190,770 100.00% 190,770 Capital Leases 1,193,771 100.00% 1,193,771

Total Direct Debt 6,229,753 6,229,753

OverlappingHamilton County 64,345,000 1.19% 765,706 Crosby Township 69,000 6.02% 4,154 Southwest Local School District 15,230,000 42.20% 6,427,060 Great Oaks Institute of Technology 14,695,000 1.22% 179,279

Total Overlapping Debt 94,339,000 7,376,199

Total Direct and Overlapping Debt 100,568,753$ 13,605,952$

Source: Ohio Municipal Advisry Council

Jurisdiction

PercentageApplicable

to City


DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBTDECEMBER 31, 2013

139

2013 2012 2011 2010 2009 2008 2007 2006 2005 2004

Assessed Value 220,322,450$ 216,642,370$ 217,867,290$ 233,926,090$ 228,098,540$ 229,936,750$ 227,643,430$ 222,939,360$ 215,347,130$ 185,257,150$

Legal Debt MarginDebt Limitation - 10.5% of Assessed Value 23,133,857 22,747,449 22,876,065 24,562,239 23,950,347 24,143,359 23,902,560 23,408,633 22,611,449 19,452,001

Total Indebtedness 8,555,000 8,985,000 9,395,000 9,765,000 4,475,000 2,855,000 3,040,000 3,205,000 3,390,000 2,895,000

Debt Within 10.5% Limitation 8,555,000 8,985,000 9,395,000 9,765,000 4,475,000 2,855,000 3,040,000 3,205,000 3,390,000 2,895,000

Overall Legal Debt Margin Within 10.5% Limitation 14,578,857$ 13,762,449$ 13,481,065$ 14,797,239$ 19,475,347$ 21,288,359$ 20,862,560$ 20,203,633$ 19,221,449$ 16,557,001$

Unvoted Debt Limitation - 5.5% of Assessed Value 12,117,735$ 11,915,330$ 11,982,701$ 12,865,935$ 12,545,420$ 12,646,521$ 12,520,389$ 12,261,665$ 11,844,092$ 10,189,143$

Indebtedness Authorized by Council 8,555,000 8,985,000 9,395,000 9,765,000 4,475,000 2,855,000 3,040,000 3,205,000 3,390,000 2,895,000

Debt Within 5.5% Limitation 8,555,000 8,985,000 9,395,000 9,765,000 4,475,000 2,855,000 3,040,000 3,205,000 3,390,000 2,895,000

Unvoted Legal Debt Margin Within 5.5% Limitation 3,562,735$ 2,930,330$ 2,587,701$ 3,100,935$ 8,070,420$ 9,791,521$ 9,480,389$ 9,056,665$ 8,454,092$ 7,294,143$

Source: City of Harrison, Finance Director's Office


COMPUTATION OF LEGAL DEBT MARGINLAST TEN YEARS

140

Net RevenueOperating Operating Available for

Year Revenue (1) Expenses (2) Debt Service Principal Interest Total Coverage (3)

2013 3,166,710$ 1,585,764$ 1,580,946$ 780,000$ 525,581$ 1,305,581$ 1.21

2012 3,208,589 1,332,757 1,875,832 400,000 243,076 643,076 2.92

2011 3,182,876 1,203,679 1,979,197 570,000 774,500 1,344,500 1.47

2010 2,835,441 1,096,588 1,738,853 550,000 792,925 1,342,925 1.29

2009 2,565,446 1,138,387 1,427,059 485,000 807,475 1,292,475 1.10

2008 2,466,866 981,777 1,485,089 425,000 818,738 1,243,738 1.19

2007 2,273,290 889,830 1,383,460 220,000 823,798 1,043,798 1.33

2006 2,436,476 842,703 1,593,773 220,000 828,197 1,048,197 1.52

2005 2,168,819 1,008,062 1,160,757 170,000 831,598 1,001,598 1.16

2004 2,434,206 1,332,503 1,101,703 160,000 941,466 1,101,466 1.00


(1) Includes both operating and certain nonoperating revenues (i.e. investment earnings and intergovernmental grants) of the sewer fund.(2) Total operating expenses exclusive of depreciation.(3) The requied coverage ratio is 1.10.


PLEDGED REVENUE BOND COVERAGE - SEWER FUNDLAST TEN YEARS

Debt Service Requirements

141

Unemployment Rates (2)

Year Population (1)

Per Capita Personal

Income (2)

School Enrollment

(3)Hamilton County Ohio

United States

2013 10,292 N/A 3,589 6.2% 7.1% 6.7%

2012 10,103 43,454 3,589 7.0% 7.2% 8.1%

2011 9,979 41,738 3,306 8.6% 8.6% 8.9%

2010 9,897 39,306 3,521 9.4% 10.1% 9.6%

2009 9,980 38,771 3,726 8.8% 10.1% 9.3%

2008 9,980 40,152 3,800 5.6% 6.6% 5.8%

2007 9,980 39,356 3,742 5.0% 5.6% 4.6%

2006 9,950 38,458 3,705 5.2% 5.5% 4.6%

2005 9,950 36,620 3,907 5.4% 5.9% 5.1%

2004 9,885 35,422 3,965 6.2% 6.2% 5.5%

"N/A" indicates that the information was not available.

Sources:(1) U.S. Census Bureau(2) U.S Bureau of Economic Analysis, Cincinnati MSA(3) Southwest Local School District(4) Ohio Labor Market Information


DEMOGRAPHIC AND ECONOMIC STATISTICSLAST TEN YEARS

142

Percentage Percentage of Total City of Total City

Employer Employees Rank Employment Employees Rank Employment

Kroger Limited Partnership 400-450 1 4.59% 300-350 6 2.77%

Hubert North America 400-450 2 4.59% 300-350 5 2.77%

J.T.M. Provisions Company Inc. 350-400 3 4.05% 400-450 3 3.62%

Southwest Local School District 300-350 4 3.51% 450-500 2 4.04%

F&M Mafco Inc. 200-250 5 2.43% 150-200 n/a 1.49%

Wayne Scott Fetzer Company 150-200 6 1.89% 0 n/a 0.00%

City of Harrison, Ohio 100-150 7 1.35% 100-150 n/a 1.06%

Cincinnati Test Systems 100-150 8 1.35% 0 n/a 0.00%

Campbell Hausfeld/Scott Fetzer 100-150 9 1.35% 650-700 1 5.74%

Cronin Ford Sales, Inc. 50-100 10 0.81% 50-100 n/a 0.64%

Total 2,150-2,650 25.95% 2,400-2,800 22.13%

Total City Employment 9000-9500 11,500-12,000

Source: Regional Income Tax Agency, City of Harrison, Ohio Income Tax BureauNote: Percentages are calculated using the midpoints of the ranges

2013 2004


PRINCIPAL EMPLOYERSCURRENT AND NINE YEARS AGO

143

Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

General GovernmentClerk of Council 1 1 1 1 1 1 1 1 1 1 1 Municipal Court Magistrate 1 1 1 1 1 1 1 1 1 1 1 Municipal Clerk of Courts 1 1 1 1 1 1 1 1 1 1 1 Mayor 1 1 1 1 1 1 1 1 1 1 1 Service Director 1 1 1 1 1 1 1 1 1 1 1 Finance 1 1 1 1 2 1 1 1 1 2 2 Law 1 1 1 1 1 1 1 1 1 1 1 Safety Director 1 1 1 1 1 1 1 1 1 1 1 Income Tax 1 1 1 1 1 1 1 1 1 1 1 Other 9 9 9 9 11 9 9 9 9 8 6

Public SafetyPolice 27 26 27 27 28 28 25 25 20 25 22 Fire 32 35 36 36 36 42 46 51 46 36 36

Health and Welfare

Senior Center 4 4 4 4 4 4 4 4 4 4 3

TransportationStreets 6 6 6 6 6 6 8 8 8 8 7

Community EnvironmentPlanning 1 1 1 1 1 1 3 3 3 - - Building/Zoning 6 6 6 6 6 6 5 5 5 1 1

Leisure Time Activity

Parks Administration 1 1 1 1 1 1 1 1 1 2 1 Community Center 1 1 1 1 3 - 2 2 2 2 2

Utility Services

Water 5 5 6 6 6 6 6 6 6 5 5 Sewer 7 9 8 8 7 8 6 6 6 7 7

Total 108 112 114 114 119 120 124 129 119 108 100



FULL-TIME-EQUIVALENT CITY EMPLOYEES BY FUNCTION/PROGRAMLAST TEN YEARS

144


OPERATING INDICATORS BY FUNCTIONLAST TEN YEARS

Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

General GovernmentPositions Filled - - - 7 10 4 3 10 0 2Building Permits Issued 186 161 115 187 186 244 178 220 177 215Building Inspections Performed 607 800 849 654 436 648 486 588 620 938Ordinances & Resolutions 82 70 68 64 85 122 76 77 76 44

Public SafetyPolice:

Physical Arrests 882 892 930 1,400 1,308 1,293 1,241 1,219 1,050 853 Offense Reports 1,365 1,381 1,381 1,420 1,267 1,196 1,255 1,242 1,072 1,001 Traffic Citations 414 402 410 1,732 1,762 1,711 3,544 2,792 2,745 1,858

Fire:Emergency Responses 1,271 1,453 1,522 1,628 1,641 1,663 1,755 1,846 1,636 1,647 Fire Responses 399 566 619 401 437 407 408 427 425 557 Inspections conducted 397 633 823 931 843 765 479 647 612 419

Leisure Time ActivitiesSenior Center Attendance 8,162 9,045 8,950 8,200 7,997 8,873 7,659 7,172 6,969 7,686 Senior Center Membership 167 190 201 223 233 223 201 186 185 208

TransportationStreet Resurfacing (miles) 2.0 - 1.0 2.6 1.1 1.1 1.1 4.0 0.2 1.1 Tons of salt used 824 805 386 990 936 690 813 362 511 313

WaterNew Connections 124 124 87 94 29 20 17 51 52 62 Water Main Breaks 7 8 10 12 15 8 15 9 8 9


145


CAPITAL ASSET STATISTICS BY FUNCTION

Function 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Public SafetyPolice:

Stations 1 1 1 1 1 1 1 1 1 1Fire:

Stations 2 2 2 2 2 2 2 2 2 2

Leisure Time ActivitiesParks 4 4 4 4 4 5 5 5 5 5Park Acreage 63.5 63.5 63.5 63.5 63.5 69.5 69.5 69.5 69.5 69.5Tennis Courts 2 2 2 2 2 2 2 2 2 2Baseball /Softball fields 3 3 3 3 3 3 3 3 3 3

TransportationStreets (Paved Miles) 40 40 40 40 40 40 40 42 42 44

WaterWater Mains (miles) 31.1 31.1 33.1 35 35 37 37 40 40 40

SewerSanitary Sewers (miles) 25 25 25 25 25 27 27 34 34 34

Source: City of Harrison Finance Director Office

LAST TEN YEARS

146

Documents

City of Harrison, Ohio